The Buffett Indicator is a time honoured and well respected measure which compares the value of US GDP against the US stock market as a whole (the Wilshire 5000 Total Market Index).
US GDP is presently around $29.75 trillion and the market is a little over $60 trillion. The Buffet Indicator was around 208% in early January, meaning that the value of the US stock market is more than twice GDP. The 'desirable' level is around 70% to 100%, although this does not reflect the changing nature of the US economy which has introduced high margin low debt technology companies and has caused a 'fair market' Buffet Indicator to rise to between 100% and 130%.
In November 2024 the Buffett Indicator rose to 230%, setting a record. Prior to the dotcom bubble which burst, it rose to 175%. The same indicators are in place now and there is daily commentary suggesting that the current asset bubble will burst, having disastrous impact on the world economy, due to the US stock market representing 60% of the world's investible stocks. Vulnerable stocks such as ZIP, which is yet to record any meaningful return for its investors outside a sharply risen share price will be affected more than others which are profitable and sustainable.
ZIP Price at posting:
$3.19 Sentiment: Sell Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)