yego.me
yego.me
💡 Stop wasting time. Read Youtube instead of watch. Download Chrome Extension

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.

Exploring Toxic Ice Caves Inside an Active Volcano | Expedition Raw
Announcing Khan Academy Official LSAT Prep – Free for all!

More Articles

View All
Thousands of Cranes Take Flight in One of Earth's Last Great Migrations | National Geographic
[Music] This is, I think, without doubt, one of the most spectacular migrations that you can witness in North America, if not the most spectacular. There’s just something really uplifting and inspiring about them, and people all over the world have felt t…
Kinetic molecular theory and the gas laws | AP Chemistry | Khan Academy
In other videos, we touched on the notion of kinetic molecular theory, which I’ll just shorten as KMT. It’s just this idea that if you imagine a container—I’ll just draw it in two dimensions here—that it contains some gas. You can imagine the gas as being…
Worked example: Logistic model word problem | Differential equations | AP Calculus BC | Khan Academy
The population ( p ) of ( t ) of bacteria in a petri dish satisfies the logistic differential equation. The rate of change of population with respect to time is equal to ( 2 ) times the population times the difference between ( 6 ) and the population divi…
Death & Dynasties
Rulers are often related, with power passing from member to member, forming a dynasty. This occurs not just with royalty or dictators, but also with representatives in a democracy. Families frequently pass power or compete with other families for a turn a…
Should you buy your private jet in cash?
Steve, I’m about to buy my first jet. Should I pay cash or should I finance it? I really think it depends. If you can make more money than they’re going to charge with the bank, obviously then borrow the money. But I’d say about 80% of the people finance…
Worked example: slope field from equation | AP Calculus AB | Khan Academy
Which slope field is generated by the differential equation? The derivative of y with respect to x is equal to x minus y. And like always, pause this video and see if you can figure it out on your own. Well, the easiest way to think about a slope field i…