Warren Buffett's favorite market valuation measure is at a record high, suggesting that the stock market is exceedingly expensive. Specifically, the total market capitalization of the U.S. stock market is now 136% greater than the nation's gross domestic product, or GDP. That's roughly 70% above the long-term norm.
The narrative surrounding this indicator's surge since the bull market began in late 2022 is bearish, of course, and perhaps rightly so.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
However, there may also be a gaping flaw in the very premise of the Buffett indicator.
Don't misread the message. Warren Buffett isn't just a brilliant stock picker. He's also got a great feel for how the economy and the stock market affect one another.
The narrative surrounding this indicator's surge since the bull market began in late 2022 is bearish, of course, and perhaps rightly so.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
However, there may also be a gaping flaw in the very premise of the Buffett indicator.
Don't misread the message. Warren Buffett isn't just a brilliant stock picker. He's also got a great feel for how the economy and the stock market affect one another.
25 days ago
