Tag Archives: Buffett indicator

It is frighteningly clear to any objective analyst and/or intelligent investor that the present bull market rally in stocks (2006-2014) is "beyond the pale" (outside the bounds of acceptable behavior) i.e. the excess valuation is dangerously above the market excesses of the 1920s.

Market Cap to GDP is a long-term valuation indicator that has become popular in recent years, thanks to Warren Buffett and it is now at the second highest level in the past 60 years - even surpassing the levels reached in 2007.