Comment on How Warren Buffett's favorite stock-market gauge can help investors make smarter decisions

How Warren Buffett's favorite stock-market gauge can help investors make smarter decisions

Paul Morigi/Getty Images The Buffett Indicator is the ratio of a country’s stock market capitalization to the overall GDP of the country. If the stock market is below 50% of the GDP, it is too low. Between 75% and 90%, the market is about right. Above 115%, it is overvalued on a relative basis. In late 2017 the market is over 130% of the GDP. It can help investors identify countries and sectors with undervalued stock markets. Warren Buffett is one of the most esteemed and revered investors of all time. His investing prowess has led him to become the richest person in the world (at times) and one of the top 5 today.

 

Comment On This Story

Welcome to Wopular!

Welcome to Wopular

Wopular is an online newspaper rack, giving you a summary view of the top headlines from the top news sites.

Senh Duong (Founder)
Wopular, MWB, RottenTomatoes

Subscribe to Wopular's RSS Fan Wopular on Facebook Follow Wopular on Twitter Follow Wopular on Google Plus

MoviesWithButter : Our Sister Site

More Business News