02/08/18

Buffett's Favorite Indicator Exposes A Stock Market More Primed For A Crash Than Ever Before



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Buffett's Favorite Indicator Exposes A Stock Market More Primed For A Crash Than Ever Before
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Authored by Michael Snyder via The Economic Collapse blog,

Warren Buffett's favorite indicator is telling us that stocks are more overvalued right now than they have ever been before in American history

That doesn't mean that a stock market crash is imminent.  In fact, this indicator has been in the "danger zone" for quite some time.  But what it does tell us is that stock valuations are more bloated than we have ever seen and that a stock market crash would make perfect sense. 

So precisely what is the "Buffett Indicator"?  Well, it is actually very simple to calculate.  You just take the total market value of all stocks and divide it by the gross domestic product.  When that ratio is more than 100 percent, stocks are generally considered to be overvalued, and when that ratio is under 100 percent stocks are generally considered to be undervalued.  The following comes from MSN

That being said, the Buffett Indicator, while it's not a ....

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