(New Update)
From time to time I'm asked why I don't include Market Cap to GDP among the long-term valuation indicators I routinely follow. The metric gained popularity in recent years thanks to Warren Buffett's remark in a 2001 Fortune Magazine interview that "it is probably the best single measure of where valuations stand at any given moment."
Both the "Buffett Index" and the Wilshire 5000 variant suggest that today's market is at lofty valuations, now above the housing-bubble peak in 2007.DYI Comments: Excellent charts showing a very expensive stock market. Poor returns going forward are now baked into the cake. Buyer beware.
DYI
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