The Buffett Indicator is the ratio of total the United States stock market valuation to GDP. It is said to be the best predictor of market corrections or crashes. As of May 6, 2021:<ul><li>Aggregate US Market Value: $51.8T</li><li>Current Quarter Annualized GDP: $22.6T</li><li>Buffett Indicator: $51.8T ÷ $22.6T = 229%</li></ul>Historically, when the stock market went above GDP by 50-100% it crashed, going below GDP. 2021 is the year in the last 100 years when the ratio was over 2x the largest stock market in history.

The Buffet Indicator

In 2021, Elon Musk asked Cathie Wood, the famous tech-focused investor from Ark investments, what is her explanation for the high Buffet indicator (a ratio of US stock market/GDP). Cathie suggests a few reasons:<ul><li>while the indicator maintained its pattern over the last 100 years, in the late 1800s was much higher, suggesting tech infection points (telephone. electricity & automobile back then)</li><li>the new tech is deflationary, making lowering the basket included in GDP. So denominator goes down while the numerator.</li><li>as bonds yields ~1-3%, money is gonna move to other assets, like stocks.</li></ul>

The impact of tech on the Buffet indicator

Does Cathie Wood think it's time to sell stocks? The stock market and in particular, the Ark ETFs have been very volatile. Time to take profits or is this a buying opportunity?  Claim Free Money 💰 US - Get 2 FREE stocks when you deposit $100 with WeBull: http://bit.ly/WeBullStocksNS 💰 UK - Get 1 FREE stock with Trading 212 - http://bit.ly/Trading212ns 💰 Get $10 of FREE Bitcoin when you invest $100 at Coinbase - http://bit.ly/CoinbaseNS 💰 Get $10 of FREE Bitcoin when you deposit $100 at BlockFi - https://blockfi.com/?ref=f35f311c Cathie Wood, is the number 1 hot shot fund manager right now, managing over $50 Billion of investor money. So in this video, I do have some recent clips from Cathie Wood and we will be looking at 4 things: Elon Musk Concerns The Buffett Indicator Warning Cathie’s Bold Prediction for Bonds Time to Sell or Buy? _________________________________________________ Subscribe Learn more about money and investing. Don’t miss out! https://www.youtube.com/channel/UCz4XY6NPKaMUWNWMONTw3NQ?sub_confirmation=1 _________________________________________________ Support The Channel https://www.youtube.com/channel/UCz4XY6NPKaMUWNWMONTw3NQ/join _________________________________________________ Disclaimer Links included in this description might be affiliate links. If you purchase a product or service with the links that I provide I may receive a small commission. There is no additional charge to you! This channel is for education purposes only. You should seek investment advice from a registered professional before making any investment decision. This channel is not responsible for any investment actions taken by viewers. #CathieWood #ArkInvest #Stocks

Discover the world of business and economics.

economics

Economics

moneyandinvestments

Money & Investments

politics

Politics

Does Cathie Wood think it's time to sell stocks? The stock market and in particular, the Ark ETFs have been very volatile. Time to take profits or is this a buying opportunity?  

Claim Free Money
💰 US - Get 2 FREE stocks when you deposit $100 with WeBull: http://bit.ly/WeBullStocksNS
💰 UK - Get 1 FREE stock with Trading 212 - http://bit.ly/Trading212ns
💰 Get $10 of FREE Bitcoin when you invest $100 at Coinbase 
 - http://bit.ly/CoinbaseNS


Cathie Wood, is the number 1 hot shot fund manager right now, managing over $50 Billion of investor money. So in this video, I do have some recent clips from Cathie Wood and we will be looking at 4 things:
Elon Musk Concerns
The Buffett Indicator Warning
Cathie’s Bold Prediction for Bonds
Time to Sell or Buy?

_________________________________________________
Subscribe
Learn more about money and investing. Don’t miss out! https://www.youtube.com/channel/UCz4XY6NPKaMUWNWMONTw3NQ?sub_confirmation=1
_________________________________________________
Support The Channel
https://www.youtube.com/channel/UCz4XY6NPKaMUWNWMONTw3NQ/join
_________________________________________________

Disclaimer
Links included in this description might be affiliate links. If you purchase a product or service with the links that I provide I may receive a small commission. There is no additional charge to you! This channel is for education purposes only. You should seek investment advice from a registered professional before making any investment decision. This channel is not responsible for any investment actions taken by viewers. 

#CathieWood #ArkInvest #Stocks

This channel was created to simplify investing and help people build wealth. Discover strategies, tools, tactics and mindset hacks from billionaire investors and traders. 

★ Crypto
★ Stocks 
★ Property
★ Bonds 
★ Gold & Silver  

The Mission
➤ To help thousands of people become better off financially

Values
➤ Integrity 
➤ Simplicity 
➤ Freedom 

Social Media
👉🏼 Twitter = https://twitter.com/_NathansTweet
👉🏼 YouTube = https://www.youtube.com/@NathanHQ

Disclaimer: This channel is for education purposes only. You should seek investment advice from a registered professional before making any investment decision. This channel is not responsible for any investment actions taken by viewers. 



Cathie Wood: Time To Sell Stocks?

The Buffet Indicator

The impact of tech on the Buffet indicator

Vladimir Oane's ideas are part of this journey:

Related collections

Similar ideas