Buffett Indicator
Total United States share valuation thermometer0%
Relatively reasonable
Buffet indicator = total US market value / GDP. Historical experience: <75% underestimation, 100% reasonable, >140% expensive, >180% overestimation, >250% overestimation.
75% Undervalued100% Fair140% Overpriced180% Overvalued250%+ Extremely high
History reading (end of year)
| Year | Read | Background |
|---|---|---|
| 1995 | 75% | Internet night |
| 2000 | 148% | Internet bubble |
| 2002 | 73% | At the bottom of the bubble. |
| 2007 | 110% | Before the financial crisis |
| 2009 | 56% | At the bottom of the financial crisis |
| 2015 | 117% | Slow recovery |
| 2021 | 205% | Liquidity |
| 2026 | 0% | Current |
The readings are estimated by market value and GDP, for macro-reference only, and do not constitute an investment proposal.
