The U.S. stock market has just blown through Warren Buffett’s favorite economic indicator, stock market cap to GDP, setting a new all-time high. The valuation of the Wilshire 5000—which hit a record high on July 23—is now somewhere north of 212% of U.S. GDP, the “Buffett Indicator” shows. Chart via LongTermTrends.Net Perhaps that’s one reason…
Tesla just had its roughest quarter in at least a decade, but some analysts and investors are still dreaming big. Elon Musk’s carmaker said on Wednesday that revenues plunged 12% year-over-year to $22.5 billion in the second quarter. Tesla’s stock fell as much as 9% in early trading on Thursday morning on the disappointing earnings,…
The DORKs are popular this week. With stocks at record highs, there’s a new class of meme stocks that’s grabbed the attention of retail traders. Absent are the OG meme names GameStop and AMC. Those early favorites have been replaced by another group. The DORKs—an acronym being thrown around by bullish traders to refer to…
The stock market is on a record-breaking rally, but investors are approaching some big hurdles they’ll have to clear through the rest of this year if they want the gains to keep coming. Strategists at HSBC Global said on Monday that they see a handful of key risks facing stock prices through the second half…
Investors are optimistic as earnings season kicks off — a little too optimistic, according to Julian Emanuel, Evercore ISI’s chief equity strategist. The S&P 500 notched another fresh record high on Monday, and sentiment is skyrocketing as Wall Street banks raise their year-end S&P 500 targets. However, stocks don’t just go up: “Every structural bull…
Swaths of California are seeing housing prices drop, thanks largely to the combination of increased inventory and sky-high interest rates. Even markets that are typically somewhat immune to general trends and consistently robust — like Mountain View and San Diego — have softened over the past year. But there are still plenty of places in…
Bill Smead doesn’t know how long the current stock-market rally can continue, but the veteran investor does think it’s in a particularly vulnerable spot. In his Q2 letter to investors on July 15, Smead — whose Smead Value Fund (SMVLX) has beaten 96% of peers over the last 15 years, Morningstar data shows — shared…
U.S. Federal Reserve Governor Christopher Waller said yesterday that he thinks the Fed should cut interest rates at the end of July because he thinks the U.S. economy’s “momentum has slowed significantly,” and he’s worried about unemployment rising. He’s not alone. Oxford Economics’ Ryan Sweet told clients this week that President Trump’s tariffs will shave…
Berkshire Hathaway’s investors may be looking at the stock and wondering if the “Buffett premium” is real — and disappearing before their eyes. The “premium” refers to the long-standing view that Berkshire stock trades at a premium because of Warren Buffett’s legendary stock-picking skills, dealmaking prowess, and shrewd management, which saw him transform a failing…
A rush of investor cash is headed for the stock market in the second half, most of it coming from retail investors. That’s according to JPMorgan, which predicted this week that investors are poised to inject $500 billion into stocks through the rest of 2025, and most of that will come from retail traders. “Led…