12 min

Buffett Indicator As Applied to Specific Sectors Deep Economic Thoughts

    • Investimentos

The Buffett Indicator (or Ratio) is a simple formula often referenced by famed investor Warren Buffett. It's simply, Total U.S. Stock Market Capitalization / U.S. GDP. The idea is basically higher ratios infer overvalued markets, while lower ratios may indicate stocks are broadly undervalued. Currently, this ratio stands at 186%.
However, what if you applied this formula to specific sectors to discern whether that particular market segment is overvalued or undervalued relative to one another? That's the premise of this episode, where the data and charts related to its discussion can be found on our website's Research Highlights at https://www.alignewealth.com/blog/research-highlights-04-09-2024
For more information or to submit your questions, please visit: https://www.alignewealth.com/
Copyright ©2024, AWAIM®. All rights reserved.

The Buffett Indicator (or Ratio) is a simple formula often referenced by famed investor Warren Buffett. It's simply, Total U.S. Stock Market Capitalization / U.S. GDP. The idea is basically higher ratios infer overvalued markets, while lower ratios may indicate stocks are broadly undervalued. Currently, this ratio stands at 186%.
However, what if you applied this formula to specific sectors to discern whether that particular market segment is overvalued or undervalued relative to one another? That's the premise of this episode, where the data and charts related to its discussion can be found on our website's Research Highlights at https://www.alignewealth.com/blog/research-highlights-04-09-2024
For more information or to submit your questions, please visit: https://www.alignewealth.com/
Copyright ©2024, AWAIM®. All rights reserved.

12 min