Attention~


Buffett Indicator = (Total market capitalization of a country's stock market / Gross domestic product of that country) × 100%...
The Buffett Indicator for the US stock market has now soared to around 223%.
What does this mean?
The normal range over the past ten years has been 110%-150%~
Warren Buffett vividly compares an indicator approaching 200% to "playing with fire," implying significant risk~
But this indicator is not foolproof; while it warns of long-term risks, it also has short-term "distortions" and structural limitations~
Additionally, the US stock market's CAPE Ratio hovers around 36.5, about 110% higher than the historical average level (17.4).
Before the 2000 internet bubble burst, the CAPE reached an epic peak above 44~ The next time it hit 40 was in 2021~
#巴菲特指标 #US stocks #IXIC #Shiller PE ratio
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