'Buffett Indicator' hits record high, signaling potential crash - Business Insider

Two crossed lines that form an 'X'. It indicates a way to close an interaction, or dismiss a notification.Warren Buffett's preferred stock-market gauge hit a record high, signaling stocks are overvalued and a crash could be coming.

The so-called "Buffett Indicator" takes the combined market capitalizations of a country's publicly traded stocks and divides it by quarterly gross domestic product. Investors use it to gauge whether the stock market is overvalued or undervalued relative to the size of the economy. Buffett, a billionaire investor and the boss of Berkshire Hathaway, described it as "probably the best single measure of where valuations stand at any given moment" in aThe indicator has its flaws, including GDP not counting income earned overseas, and US-listed companies not necessarily contributing to the US economy.

Yet it has a strong track record of predicting future downturns. For example, it surged to 118% just before the dot-com bubble burst in 2000, and topped 100% before the 2008 financial crisis. "Nearly two years ago the ratio rose to an unprecedented level,"Buffett said in the 2001 Fortune article. "That should have been a very strong warning signal."

Theron_Mohamed This is such a bad article, of course the ondicator is going to point upscale. GDO is down because of an overblown media driven COVID__19 , increased debt and lower production. In two months it will be downturned greatly. Articles like this add more fuel to the negativity.

'The so-called 'Buffett Indicator' takes the combined market capitalizations of a country's publicly traded stocks & divides it by quarterly gross domestic product.' Not really. Calculation skewed by COVID artificially reducing GDP making stocks seem overvalued.

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

Business Insider's best investing stories of April 2020 - Business InsiderThe definitive list of the best investing stories published by Business Insider in April 2020 — from A-list recommendations to top stock picks.
La source: BusinessInsider - 🏆 729. / 51 Lire la suite »

'Black swan' funds gained a record 57%, profited from market meltdown - Business Insider'The virus is popping the bubble': 'Black swan' funds scored a record 57% gain after profiting from the market meltdown In what world will they spend their money? 2021 Dog eat Dog World. The United States of America, people are dying children are crying, concentrate! Exactly how bad do you think it will be? Because for a while it just started but eventually people will start leaving for safety all finished here, just waiting for the last shoe to drop, in ruin... facecardllc
La source: BusinessInsider - 🏆 729. / 51 Lire la suite »

Elon Musk to personally insure Tesla board, citing 'high premiums' - Business InsiderTesla isn't a stranger to high insurance costs for its vehicles, and last year launched an insurance product for its owners in California. ShortingIsFun People are going to look dumbfounded in a few years and ask themselves, 'where were the signs?' What happens if elonmusk drives his Tesla off a cliff?
La source: BusinessInsider - 🏆 729. / 51 Lire la suite »

How I lost over $600 by not using a high-yield savings account - Business Insider'If I had placed my emergency savings into a high-interest savings account that offered 1.70% APY (a reasonable APY to expect last year before the coronavirus hit) I would have earned $612.50 in interest in 2019' This is 100000% a sales article for CIT and Goldman. The writer should have done a better job of remaining independent. Unless you intended this to be a sales article? If so, you need to state that. BIG LIE.
La source: BusinessInsider - 🏆 729. / 51 Lire la suite »

Elon Musk says Tesla Autopilot will hit big milestone a year late - Business InsiderTesla CEO Elon Musk said he believes Autopilot will be able to drive an owner from their home to their office by the end of this year. Amazing. He is a leader with a vision beyond his years. Another empty promise? Let's hope that he isn't lying this time...
La source: BusinessInsider - 🏆 729. / 51 Lire la suite »