Is the stock market overvalued? Is the stock market going to crash? These are the questions answered in this video of why this is the most overvalued stock market ever according to the Warren Buffett indicator.
The Buffett indicator (or the Buffett metric, or the Market capitalization-to-GDP ratio), is a valuation multiple used to assess how expensive or cheap the aggregate stock market is at a given point in time.
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Other videos you need to watch:
◾️Warren Buffett’s Most Iconic Interview Ever: https://www.youtube.com/watch?v=8OcegOGAGIs&t=321s
◾️Warren Buffett: The Big Problem with Dividend Investing: https://www.youtube.com/watch?v=9H2UrOEKWgY&t=251s
◾️Warren Buffett Warns Against Diversifying Your Portfolio: https://www.youtube.com/watch?v=I9sHKKxXtfc&t=334s
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44 Comments
Master level video Hindi mai hai kya
Is any company a "US" company anymore. If half your profits are outside the nation this indicator goes bust.
Few problems. You could have been saying this for awhile now and missed out on plenty of gains.
You must count the fed money pumped into the system as well. Plus the tax rate.
Inflation will make the value to go up even though the value doesn't. 😀 Yet you still miss out.
Can you make a video on Nick Sleep's Scaled Economies Shared. It's contrarian to traditional value investing.
You are my new best friend! You are so well spoken and easy to understand and listen to! Thank YOU!
FANTASTIC VIDEO!!!
The bubble right now is bigger than the 1929 every 7 years or so on the chart we have a stock market crash difference between correction and crash and the big bust which was in 29 there's a couple times when we really busted down to the lowest bust you can boom bust and that was in 29 okay so on world war II when when Pearl harbor was another dip and this this is what we see now in the indicator but every six seven years and and numbers that we crunch indicate on the chart when these things happen and so we don't know exact dates but we have a pretty good idea we might miss it by a month but who cares it isn't the precision it's the fact that I know it's going to happen and when you can time the markets no words if I can sell right at the top before it goes down in that w formation what goes up we'll go down then you can get out and then I want all my diamonds won't ride down the worst bear market crash in history it's just not worth it to take all your money and ride a bear market all the way to the bottom when it's a 1929 bust because you know the amount of time that it takes for that stock market crash to recover could be years a couple times it took 20 years in recovery do you have 20 years to wait or let's say it's 6 months let's say it's 2 years okay do you the fact is if you have money liabilities don't you want to turn them into assets well how are your you have no assets wait what's that you hit the bottom I'm in the whole point is does a chicken lay eggs the chicken is a liability and the eggs are assets so you want to get rid of your liabilities at your debt and you want to get something like a chicken which is a liability it will create assets eggs so that you don't have to go to work anymore you can sell the eggs and you don't have to go to work and that's the beauty of it but
We are in a mega quick bubble it's going to burst we've known it all along that's why Warren buffett's been selling stocks for the last 6 months he's been rotating into different sectors most of his money right now is an apple and coca cola he's removed almost half of his assets are in cash and the other is waiting to get hit by an explosion one of his stocks he sold his financials because they'll get hit the hardest Wells Fargo is what he owns but he's getting the hell out of there quick because the institutions will get hit then we'll go into a reset and they'll have a cryptocurrence with gold back at that point will reestablish the banking system as it gets bailed out with the cryptocurrency this point I'll be buying Tesla $100 a share and our own about 10,000 shares then by the time he gets set back up to start manufacturing cars in a couple years I'll have half of his company I got a crystal ball let's see if I'm right and 15 days
Right the buffet indicator indicates a 60% crash that would put Tesla stock at what and why doesn't Warren Buffett buy Tesla stock if it's such a great deal will the richest man become the poorest will he have to what will happen this is what where guys like me come in with the crystal ball oh yes the crystal ball that I have that shows me the direction of the markets you don't think I have a crystal ball you call me on my back let me show you the Crystal Ball from Atlantis when the oceans went back and I ran out there a mile and I grabbed a ball and then ran back to the beach and then the tides went back and the man saw Atlantis but he never saw it again it vanished you think this is a storytell or do you think it's real let me tell you it was real
Thanks for this amazing lesson
Yeah ur videos are much better than the endless drivel on Youtube
I absolutely love your content and how you break all of these concepts into small digest able bits.
I have a theory on why the stock market has increased in value so much and wanted to get your thoughts on.
My theory is that with commission free trading there has been more money injected into the stock market through two vectors. One being that money that would have been allocated to commissions is now making it's way into securities. The other it has become much easier for retail traders to trade and that has also led to more money being injected into the market.
I think a pull back is likely, However I theorize that what we're used to as far as buffets indicator may be higher than the average of 85%.
Good presentation, try not to vocal fry though.
Try 70% its gonna pop literally within weeks
The buffet indicator will be higher if the wilshire 5000 index will also include private companies (and not the opposite)
FUCKING AWESOME! Subscribed.
Excellent information and excellent explanation , thank you so much , please keep on your efforts.
Good information, however, Warren is also noted for stating "Unless you can watch your stock holdings decline by 50% without becoming panic-stricken, you should not be in the stock market". Good investing also involves buying quality stocks, and holding them for a long period of time.
you cannot compared the value to historical average. Each period has it own feature.
The buffet indicator says something is inflated out of those thousands of Campania, just doesn't say what… Everything can't be inflated to double it's value… Choose wisely.
GDP is really -15%. This country is so screwed because the Govt., prints 20% new GDP with govt. Spending to create a 3% GDP.
Can they do this forever ? No, he'll no, that is how screwed it is. This video is to tell you " don't really worry" with buffet indicator which is now irrelevant because if the printing.
Wake up, stop cherry picking so you feel good. The country destroyed the dollar for globalist greed scum
10:37 got your math backwards. Adding more companies to the index would increase the 44 trillion number (the numerator). This would raise the index even more.
I keep saying that trading and investing is easy and safe with the right help that's why I trade with Theresa she's the best
Playing devil's advocate here: there hasn't been a time when governments pumped so much money into the economy either. Does it make sense to compare historical averages when the current circumstances are so different?
GREAT CHANNEL. GREAT CONTENT.
An advice, well not free as I would also gain from it.
If you put half the effort on research of Indian stock market (which is very similar to the one you are currently representing). It would fulfill following
1)more people more views more monetization.
2)If goal is spreading information.
3)More knowledge/facts/statistics doesn't hurt.
4)more appreciation(I know you deserve it) 👍
Thanks in advance.
What's the Buffett indicator? There's also two types of Risk – Market Risk and Systemic Risk.
Overvalued adjustable for inflation means valued correctly however the money is worth less. $7.00 cookies
Exvellent
The buffet indicator fails to take into account zero fed interest rates
Is it possible we will reach a historic average of the Buffet indicator via increase of the denominator (GDP to $55T via inflation) and NOT an decrease in the $47T stock market valuation? Thanks for any insight.
the crash will be so bad, it will spawn wars as planned so the powers that be will have what they invested to gain, more power.
the advent of the app stock acquisition market must be figured in to gain more insight to what is about to happen.
If you add the value of none publicly traded stocks to publicly traded stocks and the divide that by GDP the number would be higher and not "lower". as stated towards the end of the video. The % would be higher if you "add it"..
Missed several episodes recently, but found not only the content also tempo of the video become more complete and comfortable. Thanks for always sharing useful information! Love it.
To use this indicator you have to consider interest rates as well… Buffet has said this himself. Low interest rates means stocks should be higher relative to GDP.
I retired at 33 (I'm 38). Don't expect a 60% crash. We just had economic lockdowns and it didn't even drop 40%. Just trying to help.
Fantastic video. Very informative. Thank you!!
Awesome presentation!
This is honestly what schools and universities should teach. Believe it or not, I sent one of your videos (on calculating intrinsic value) to my old accounting/corporate finance teacher. Hope you continue making videos like this one 🙂
In my country, the Philippine stock market has lots of undervalued stocks, still not recovering from last year dumps. And when the US market crash again, stocks here will follow the crash and that means sale again. 😎
Really good video
Sell and you'll regret
In Germany, that's around 58% right now 🤔
I prefer no hand writing animations
Can you please make a video on ur education. Please make a video on this topic. Please 🙏🙏