Indicator

13.02.2021, 18:38

We started our post with the words of Warren Buffett's: Investors should "be fearful when others are greedy."

This great quote didn't come to mind for nothing.

You will ask why?

Let's see what happened in the stock market.

Today is Saturday, the work week has come to an end, the stock market closed with new records.

Let's analyze.

And so the Buffett indicator is at a new peak since 2019.

The Buffett Indicator is the ratio: the total market capitalization of US stocks divided by the total dollar value of a country's GDP.

224% above GDP and 84% above long-term value.

It is worth considering whether this is a trend or a grossly overestimated estimate.

If we analyze what is happening with other estimates, we will also see records.

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