What justifies a stock price to GDP three times higher for the US than the rest of the world?
This implies the US fake printed money stock market bubble can drop 67% just to reach the value of other world markets.
This valuation measure is also known as the Buffet Indictor because it was invented by Warren Buffett. At his shareholder meeting he said their is nothing worth buying and that he wouldn’t buy stocks at these prices even if he could only get 1% on his savings. He’s in record cash.
How long would the valuation difference in the stock markets last, if the Fed made a point of getting its balance sheet quickly down even to 2019 levels? The Fed still has 82% (!) of its peak level of assets, 15+ years after the GFC.t.co/FeodVcuiPB
— David Sommers (@dgsommersmkts) May 13, 2024
If $GME and $AMC can put up 50-100% gains on a tweet, maybe monetary policy isn't all that tight. pic.twitter.com/iiGIZiwkwF
— Bob Elliott (@BobEUnlimited) May 13, 2024
h/t Tonight We Ride!