Warren Buffett:The upcoming stock market collapse?

less than 1m read

·Nov 7, 2024

Warren Buffett's favorite stock market indicator is flashing warning signs. Warren Buffett's called The Oracle of Omaha for good reason, and it is not just pure intuition. He coined a certain metric called the Buffett indicator, and he has even gone as far as to say that this is the single greatest measure of where evaluations in the stock market stand at any given moment.

Here's how the Buffett indicator is calculated: in the numerator of the fraction, we have the value of all stocks in the United States; on the bottom, we have America's GDP. Where do you think the Buffett indicator is at? Well, for reference, the long-term average of the Buffett indicator is around 88. Over the last 50 years, with the total value of the U.S. stock market at 43.7 trillion dollars and the most recent estimate for GDP at 26.1 trillion, the Buffett indicator is at a whopping 167 percent.

That's nearly double the long-term average, suggesting at first glance that the stock market is significantly overvalued. Only time will tell what this means for investors.

A productive day in my life: Packing and moving abroad 🇮🇹

Surviving Shok Valley | No Man Left Behind

View All

Slowly into Secret Scotland | National Geographic

I believe that to truly slow down, you have to change the way you travel. Cycling allows me to travel more fluidly, to connect more deeply with my surroundings and, I hope, with the people who call this place home. I’m Michael George and I’m a National Ge…

The van der Waals equation | Khan Academy

We have so far spent many videos talking about the ideal gas law: that pressure times volume is equal to the number of moles times the ideal gas constant times temperature measured in Kelvin. What we’re going to do in this video is attempt to modify the i…

Horizontal area between curves | Applications of definite integrals | AP Calculus AB | Khan Academy

So I have two curves graphed here, and we’re used to seeing things where Y is a function of X. But here we have X as a function of Y. In fact, we can write this top expression as being a function of Y, and this second one, just to make it different, we co…

Social contract - schmotial contract

People who support the state often say that everyone who lives in the territory claimed by the state has implicitly agreed to abide by the state’s rules; that by not leaving the territory, they’ve entered into a voluntary agreement. This agreement is ofte…

Theorem for limits of composite functions | Limits and contiuity | AP Calculus | Khan Academy

In this video, we’re going to try to understand limits of composite functions, or at least a way of thinking about limits of composite functions. In particular, we’re going to think about the case where we’re trying to find the limit as x approaches a of …

Joel McHale in a Slot Canyon | Running Wild With Bear Grylls

[music playing] OK, this is going to be tight. BEAR GRYLLS (VOICEOVER): Comedian and actor Joel McHale and I are trying to navigate a deep slop canyon in the Arizona desert. Oh my god. BEAR GRYLLS (VOICEOVER): But it just became dangerously narrow. Oh…

Warren Buffett:The upcoming stock market collapse?

More Articles