MyPlanIQ submits:In his 2001 Fortune magazine article, Warren Buffett used the ratio of the market value of all US publically traded securities to Gross National Product (GNP) as a yardstick to measure the stock market valuation. He stated, Complete Story »
MyPlanIQ submits:Warren Buffett created a ratio of the market value of all US publicly traded securities to Gross National Product (GNP) as a yardstick to measure stock market valuationMyPlanIQ has been tracking this index and presents the current status. This will be reported every other week (bi-weekly)
ByAharonovich Management:Do you respect Warren Buffett and value his opinion? I'm sure you do. There's no reason why you wouldn't.In my previous article I pointed out that the U.S. economy doesn't seem to be in a good shape and that the markets are underestimating the "1/4 Cliff" as well as the sequestration immediate implications on consumption.
By Jason Tillberg:One valuation metric for identifying what markets are cheap and what markets are expensive is to compare the market cap of the country's entire stock market relative to the same country's GDP. This article attempts to observe not just the U.S. stock markets, but global markets as well.
For the first time since the recovery began, Warren Buffett’s favorite valuation metric has breached the 100% level. That, of course, is the Wilshire 5,000 total market cap index relative to GNP. See the chart below for historical reference.
By Insider Monkey: Warren Buffett is one of the top investors of the past century. His every move is closely followed by investors and mainstream media. Unfortunately, he doesn't trade very often. When he buys stocks, he holds them for years. So investors who are worried about short-term returns can't really gather much intelligence from Buffett's holdings.
By Cullen Roche: For the first time since the recovery began, Warren Buffett's favorite valuation metric has breached the 100% level. That, of course, is the Wilshire 5,000 total market cap index relative to GNP. See the chart below for historical reference.
MyPlanIQ submits: Yale Professor Robert Shiller has devised and maintained his Cyclically Adjusted Price Earning ratio (CAPE10) as an alternative to the P/E ratio to value the U.S. stock market.CAPE10 is defined as the ratio of price to the average of the last 10-year trailing S&P 500 annual earnings.
By Insider Monkey:
Jim Cramer recommends dozens of stocks on his show every week but he isn’t really bullish about most of them. Cramer buys only a small percentage of stocks he recommends for his charitable trust. Among Cramer’s recommendations we pay most attention to these stocks.