What is the Warren Buffett Indicator Saying About Gold?

On Friday, both the S&P 500 and the Nasdaq composite indices closed at record highs in the US, with the Dow Jones Industrial Average only a whisker away from its peak set in March. What has often been called the “most hated bull market in history” continues thus far to chug along in defiance of its detractors. There are certainly plenty of reasons to believe US equities are overvalued and that stocks may be reaching a major cyclical high. Equity valuations are not cheap by almost any measure, real GDP growth remains at a tepid 2% YoY pace, and short-term interest rates are finally on the rise. While there is always the possibility that a major bullish move may be in the works for stocks, potentially on the back of “Trumponomics”, it is well worth considering at this juncture what Warren Buffett once called “probably the best single measure of where valuations stand at any given moment”. The ratio of total stock market capitalization to GDP, a favored indicato...

from GoldBroker.com https://www.goldbroker.com/news/what-is-the-warren-buffett-indicator-saying-about-gold-1119