Warren Buffett’s preferred stock-market gauge hit a 30-month high this week, signaling worldwide equities are overvalued and may be due for a correction. The global version of the “Buffett indicator” — which compares the value of the world’s stocks to global GDP — zoomed past 100% for the first time since February 2018.
The landmark was first spotted by Welt market analyst Holger Zschaepitz on Twitter. Buffett said in 2001 that when the indicator hit a record high in the months before the dot-com crash, it “should have been a very strong warning signal.”
Warren Buffett’s favorite stock-market indicator climbed to a 30-month high this week, suggesting world stocks are overpriced and a correction may be around the corner.
The global version of the so-called Buffett indicator passed 100% this week for the first time since February 2018. The milestone was first highlighted by Welt market analyst Holger Zschaepitz on …