There is also the fact that we've been cranking a bull run for several years now, and a lot of stuff is probably overvalued. Inevitable we are going to see a pullback at some point on that alone.
Quote:
The Buffett Indicator (aka, Buffett Index, or Buffett Ratio) is the ratio of the total United States stock market to GDP.
Buffett Indicator = Total US Stock Market Value Gross Domestic Product (GDP)
As of December 31, 2024 the ratio values are:
Total US Stock Market Value = $62.29T
Annualized GDP = $29.55T Buffett Indicator = $62.29T $29.55T
= 211%
This ratio fluctuates over time since the value of the stock market can be very volatile, but GDP tends to grow much more predictably. The current ratio of 211% is approximately 66.99% (or about 2.2 standard deviations) above the historical trend line, suggesting that the stock market is Strongly Overvalued relative to GDP.
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https://www.currentmarketvaluation.c...-indicator.php