A valuation metric, which Berkshire Hathaway chair Warren Buffett once called the “single best measure of where valuations stand,” is now signaling that U.S. equities could be trading at relatively attractive levels.
What Happened: Known as the “Buffett Indicator,” the ratio compares the total value of publicly traded U.S. companies, tracked by the Wilshire 5000 Index, to the country’s gross domestic product.
The measure currently sits at around 180%, reported Bloomberg, roughly the same level seen after last year’s rapid unwinding of the Japanese yen carry trade, which triggered a sharp selloff. That downturn ultimately set the stage for a strong S&P 500 rally in late 2024.
The indicator soared to record highs last year, echoing past market bubbles, including the dot-com era in 2000. Its recent dip comes as the S&P 500 has rebounded 12% from April lows, though it remains down nearly …
Full story available on Benzinga.com
A valuation metric, which Berkshire Hathaway chair Warren Buffett once called the “single best measure of where valuations stand,” is now signaling that U.S. equities could be trading at relatively attractive levels.
What Happened: Known as the “Buffett Indicator,” the ratio compares the total value of publicly traded U.S. companies, tracked by the Wilshire 5000 Index, to the country’s gross domestic product.
The measure currently sits at around 180%, reported Bloomberg, roughly the same level seen after last year’s rapid unwinding of the Japanese yen carry trade, which triggered a sharp selloff. That downturn ultimately set the stage for a strong S&P 500 rally in late 2024.
The indicator soared to record highs last year, echoing past market bubbles, including the dot-com era in 2000. Its recent dip comes as the S&P 500 has rebounded 12% from April lows, though it remains down nearly …
Full story available on Benzinga.com
A valuation metric, which Berkshire Hathaway chair Warren Buffett once called the “single best measure of where valuations stand,” is now signaling that U.S. equities could be trading at relatively attractive levels.
What Happened: Known as the “Buffett Indicator,” the ratio compares the total value of publicly traded U.S. companies, tracked by the Wilshire 5000 Index, to the country’s gross domestic product.
The measure currently sits at around 180%, reported Bloomberg, roughly the same level seen after last year’s rapid unwinding of the Japanese yen carry trade, which triggered a sharp selloff. That downturn ultimately set the stage for a strong S&P 500 rally in late 2024.
The indicator soared to record highs last year, echoing past market bubbles, including the dot-com era in 2000. Its recent dip comes as the S&P 500 has rebounded 12% from April lows, though it remains down nearly …Full story available on Benzinga.com Read MoreAAPL, Adam Sarhan, AMZN, Berkshire Hathaway, Buffett indicator, Equities, META, MSFT, News, QQQ, SPY, Stories That Matter, Warren Buffett, Markets, Tech, Media, SPY, US78462F1030, AAPL, US0378331005, AMZN, US0231351067, MSFT, US5949181045, QQQ, US73935A1043, META, News, Equities, Markets, Tech, Media, Benzinga Markets
