The 'Warren Buffett Indicator' has surged above 200%, meaning the market's price is far ahead of the economy's size

The ‘Warren Buffett Indicator’ has surged above 200%, meaning the market’s price is far ahead of the economy’s size

The “Warren Buffett Indicator” is a simple yardstick that compares the total U.S. stock market’s value to the size of the U.S. economy. It’s recently surged above 200%, a level Buffett once warned is like “playing with fire,” signaling stretched valuations versus economic output. It’s soared because market values have risen far faster than GDP,…

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How investors should be thinking as the stock market nears a P/E ratio of 30—a number that spelled disaster before the dotcom crash

How investors should be thinking as the stock market nears a P/E ratio of 30—a number that spelled disaster before the dotcom crash

Something doesn’t make sense about the current stock market boom. U.S. big caps keep soaring while the economic outlook keeps getting worse. Right now, the atmospherics, Big Momentum and AI euphoria, are winning over the negative news flow and daunting market metrics. But sooner or later the fundamentals will take charge, and then, watch out…

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