Warren Buffett’s favorite valuation metric is ringing an alarm

However, in recent weeks, even that long-term trend fails to justify the metric’s frothy appearance. With U.S. market cap more than double the level of estimated GDP for the current quarter, the ratio has surged to the highest-ever reading above its long-term trend, according to an analysis by the blog Current Market Valuation, suggesting a “strongly overvalued” situation.

from Stocks-Markets-Economic Times https://ift.tt/3tTpnGO