Is The Stock Market In A Bubble? Equity Valuations Say YES!
The “is it a bubble” debate continues, this time with a couple of popular mainstream metrics.
First is the Buffett Indicator, named after the man who popularized it, Warren Buffett. At its core, it is a ratio of total stock market capitalization to nominal GDP.
In order to capture as much of the US stock market as possible, the Wilshire Full Cap Price Index is used, divided by US nominal GDP… with breathtaking results.