S&P 500 ^GSPC 5,306.04 +0.02%
Nvidia NVDA $1,140.59 +7.13%
Tesla TSLA $176.75 -1.39%
Alphabet GOOG $178.02 +0.96%
Amazon AMZN $182.15 +0.77%
Meta META $479.92 +0.36%
Microsoft MSFT $430.32 +0.04%
Apple AAPL $189.99 +0.01%

Is anyone here following Buffet's bust indicator?

Buffett's Crash Indicator is sounding the alarm again after stocks rose tremendously this year. Global equities are now worth more than global GDP.

Warren Buffett warned that if the market value of stocks exceeds the size of the economy, it could signal that markets are too expensive and a crash may be coming.

So, is a crash coming? 🤔


No, that was true for the last century with today's notion of price it can be highly exceeded because stocks reflect many more expectations and their valuations are driven by value to a lesser extent than they were and so the price can be at higher multiples of value than it was in the last century due to increased interest and expectations. the total number of people interested in a stock is simply growing much faster than the number of available shares. Well that's just my quick impression. A detailed rationale would require a lot of work which I won't do, but I wonder if any of the analysts who do this will figure it out :-)

I have to agree with you there.

I just hope we all buy on the cheap