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The Buffett Indicator

  If you check the stock market, you see that it gives the best picture of the economy  but it is not   if you compared with GDP which is falling  and now it is negative also.   If you see the Buffett indicator it  holds  true that the market is really overvalued and it is not showing the correct picture of  the economy.   For those of you who heard  about the  Buffett Indicator for the first time let me explain to you that it is the Indicator  buil t  by  great investor  Warren Buffett after the Dot-Com Crash  which happened two decades ago.  Warren Buffett said to investors that  to check whether the market is overvalued or not you can check by one  metric which  i s  –  “ Ratio of Market caps of Global stocks to Global GDP .”  Th is ratio  is  known  as the Buffett indicator.   If it is above 100% means the stock market is overvalued.   On 12th A...