Glossary

Buffett Indicator

What is the Buffett Indicator?

The Buffett Indicator is the ratio between the total valuation of the US stock market and US gross domestic product. A reading above 100 per cent is typically taken to mean the market is expensive, while something around 50 per cent suggests it is cheap. The number moves every day with prices, so a given level only means something together with the date it was measured on.

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