Page 8 - Buffett Indicator News Today

very dangerous thing to economies and societies, and always climaxes with more centralized control in its wake. The problem for the 21 st century, however, is that almost no global policymaker (left, right or center, European, Asian or American) wanted to touch this $280T debt elephant in the room. Instead, they buried their heads for years in the sand and sought re-election with promises paid for with, alas, more debt. In this openly embarrassing backdrop (long  before COVID), economic ort...

NEW DELHI: Indias market capitalisation-to-GDP ratio is hovering above 100 per cent level, ringing alarms over expensive valuations. But do not get surprised if the same, called Buffett Indicator because the legendary investor uses it to judge pricey markets, one day touches 200 per cent for Dalal Street. This may not be a fit-for-all indicator. In the US, the m-cap-to-GDP ratio has hit 200 per cent and in Taiwan, it is screaming at 300 per cent currently. As per the indicator, stocks are deeme...

Light at the end of the tunnel? The main issue is whether we gallop out or canter out from the shadow of coronavirus Big business is in the money – and in America, the biggest money of all. But does this justify the sky-high valuations on Wall Street, and indeed on all assets just about everywhere? That is another matter.  The high-tech giants of the US West Coast have delivered a string of bumper results.  Apple profits doubled as people have switched to 5G phones, cementing its position a...

Yikes! The Federal Reserve continues to print money at a historic high rate and with it we get an epic asset bubble as demonstrated by the Buffett Indicator (Stock Market/GDP) plotted against M2 Money. Note that the dot.com bubble of the late 1990s was seemingly detached from Fed money printing. As such, the Shiller “CAPE” ratio (cyclically-adjusted price/earnings ratio) is at its highest level since the dot.com bubble.

You may ask, why do I need such exposure? The stock market rebounded in April 2020 even when the U.S. gross domestic product (GDP) was negative. At that time, market experts stated that one reason for this was the huge international exposure of tech giants. This globalization has proved the Buffett Indicator, which believes that the stock market is a measure of the nation’s gross domestic product incorrect. As the world comes closer, it time to look beyond America or Canada and bet on the wo...

Buying the dip in stocks like Shopify Inc. (TSX:SHOP)(NYSE:SHOP) is just one tip to employ during a market correction.

Relatively few countries are affected as much by the US economy as Canada does, thanks to the proximity and interdependence of the two countries.

By: Andrew Moran A year ago, the financial markets were infected with the coronavirus. Black Mondays, dead cat bounces, falling knives, and billions of dollars in liquidation dominated the business headlines. Twelve months later, equities are at record highs, commodities have been supercharged into a supercycle, cryptocurrency’s journey to the moon is back on, and armchair investors are beating the hedge funds. But why is there this overwrought feeling that the colosseum is about to impl...

Todays infographic by provides an overview of how the Buffett Indicator has changed since 1950. Well also explain how the ratio is calculated, and why things might not be as dire as seem.

By John Persinos, InvestingDaily.comInvesting Daily Article of the Week