Warren Buffett Indicator Hits 13-Year High, Global Stocks Overvalued
- Warren Buffett’s preferred market gauge has jumped to its highest level since October 2007, suggesting worldwide stocks are the most overvalued since the financial crisis.
- “Buffett indicator sounds the alarm,” Welt market analyst Holger Zschaepitz tweeted. “Global stock mkt cap has now topped 120% of global GDP, and thus the same level as before the crash in 2008.”
- Buffett described the indicator in 2001 as “probably the best single measure of where valuations stand at any given moment.”
- The famed investor said it “should have been a very strong warning signal” when the indicator hit a fresh high before the dot-com bubble burst.
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