Get all your news in one place.
100's of premium titles.
One app.
Start reading
International Business Times UK
International Business Times UK
Business
Niloy Chakrabarti

The Last Time This Warren Buffett Indicator Reached This High, A Painful Year-Long Bear Market Followed

Fund managers believe the indicator needs fine-tuning.

Warren Buffett's time-tested stock market valuation indicator reached an all-time high of 200% last week, surpassing a peak of 197% in November 2021. This implies that US stocks may be extremely overvalued. Shortly after the "Buffett Indicator" peaked in November 2021, the stock market entered a bear market.

The indicator divides the total market capitalisation of all US stocks by the most recent quarterly GDP estimate. According to a Fortune report, Buffett said the indicator, which compares the total stock market value to the national economy size, is "probably the best single measure of where valuations stand at any given moment."

Sign up to read this article
Read news from 100's of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.