#buffett indicator

What is Market Cap to GDP Ratio (Buffett Indicator) | Latest India Number?

India’s Latest Market Cap to GDP Ratio Introduction In the current Equity market outlook, India’s Market Cap to GDP ratio jumped 104, at 20-year high as on March 18, 2021. The ratio was at 56, the sharpest decline in March 2020. In March 2020, the Indian stock market seemed to be closer to the bottom of current correction phase. After the steepest correction of almost 30% (YTD), India’s Market…

This Warrens a Buffet Indicator!

Warren Buffet is highly regarded as one of the most capable value investors. His insight and experience have armed him with the ability to develop his own financial metric, “The Buffet Indicator”. Used to measure the economy, it is the ratio of the stock market capitalisation of a country to its GDP.

The ideal value of this indicator is 1 because if every single economic activity was corporatized, the GDP would be numerically identical to the aggregate turnover of companies. A higher ratio hints at overvaluation meaning that a crash is imminent. As it just so happens, the Indicator is over 180% right now.

From increased listings to the pandemic-induced economic downturn, the reasons are plenty. Admittedly, this Indicator has its own share of flaws. And for India, the latest numbers are at 70% and has rarely gone upwards of 100%. Even though we witnessed a few remarkable milestones, the Indian market has quite a distance to traverse.

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What is Market Cap to GDP Ratio (Buffett Indicator) | Latest India Number?

India’s Latest Market Cap to GDP Ratio Introduction

India’s Market Cap to GDP ratio jumped 89, at 10-year high driven by markets at life-time highs as on November 18, 2020. The ratio was at 56, the sharpest decline in March 2020.

In March 2020, the Indian stock market seemed to be closer to the bottom of current correction phase. After the steepest correction of almost 30% (YTD),…

GDP contraction pushes Buffett indicator to 98%

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MUMBAI : A 22.6% contraction in nominal GDP for the first quarter of financial year 2020-21 has sent the market cap-to-GDP ratio spiralling up to a decadal high of 98%.

Also called the Buffett indicator for the attention paid to it by investment guru Warren Buffett, the ratio compares market capitalization of all listed stocks to the gross domestic product (GDP). It…

Nifty at 15,000 or 8,400? The answer explains why D-Street veterans are shrugging off danger signal on Buffett Indicator

With Warren Buffett’s favourite indicator dropping hints that stocks have become expensive globally, Indian investors are wondering whether it will halt the rally on Dalal Street too.

Seasoned investors on Dalal Street say the situation in India is way different.

The market capitalisation-to-GDP ratio – named Buffett Indicatorafter the legendary investor– looks at the total value of a stock…

Warren Buffett's most popular market indicator is rising to a 30-month high, signaling that global stocks are overpriced 2020

REUTERS / Shannon Stapleton

Warren Buffett's favorite stock metric hit a 30-month high this week, suggesting global stocks are overvalued and may need a correction.

The global version of the "Buffett Indicator", which compares the value of global stocks to global GDP, has risen above 100% for the first time since February 2018.

The milestone was first discoveredby world market analyst Holger…

What is Market Cap to GDP Ratio (Buffett Indicator) | Latest India Number?

India’s Latest Market Cap to GDP Ratio Introduction

India’s Market Cap to GDP Ratio Recovers from March Lows. In current Equity market outlook, India’s Market Cap to GDP ratio recovered to 68 from 56, the sharpest decline in March 2020 (Lowest since FY2009-10).

In March 2020, the Indian stock market seemed to be closer to the bottom of current correction phase. After the steepest…

What is Market Cap to GDP Ratio (Buffett Indicator) | Latest India Number?

India’s Market Cap to GDP Ratio at its Lowest Since FY2010 Introduction

Is the Indian stock market closer to the bottom of current correction phase? After the steepest correction of almost 30% (YTD), India’s Market Cap to GDP ratio is at its lowest since FY2010, leading to unprecedented collapse in market valuations in bear markets.

Market Cap to GDP Ratio, also popularly known as the…