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Friday, December 02, 2016 2:57:23 PM
Market Cap to GDP: An Updated Look at the Buffett Valuation Indicator
By Jill Mislinski
* December 2, 2016
The Latest Data
The denominator in the charts below now includes the Second Estimate of Q3 GDP. The latest numerator value is Q3 data from the Fed's "Corporate Equities; Liability" extrapolated based on the quarterly change in the Wilshire 5000. The current reading is 118.7%, down from 124.9% the previous quarter. It is off its 129.7% interim high in Q1 of 2105.
Here is a more transparent alternate snapshot over a shorter timeframe using the Wilshire 5000 Full Cap Price Index divided by GDP. We've used the St. Louis Federal Reserve's FRED repository as the source for the stock index numerator (WILL5000PRFC). The Wilshire Index is a more intuitive broad metric of the market than the Fed's rather esoteric "Nonfinancial corporate business; corporate equities; liability, Level". This Buffett variant is off its interim high of Q2 of 2015.
. . .
http://www.advisorperspectives.com/dshort/updates/2016/12/02/market-cap-to-gdp-an-updated-look-at-the-buffett-valuation-indicator
• DiscoverGold
By Jill Mislinski
* December 2, 2016
The Latest Data
The denominator in the charts below now includes the Second Estimate of Q3 GDP. The latest numerator value is Q3 data from the Fed's "Corporate Equities; Liability" extrapolated based on the quarterly change in the Wilshire 5000. The current reading is 118.7%, down from 124.9% the previous quarter. It is off its 129.7% interim high in Q1 of 2105.
Here is a more transparent alternate snapshot over a shorter timeframe using the Wilshire 5000 Full Cap Price Index divided by GDP. We've used the St. Louis Federal Reserve's FRED repository as the source for the stock index numerator (WILL5000PRFC). The Wilshire Index is a more intuitive broad metric of the market than the Fed's rather esoteric "Nonfinancial corporate business; corporate equities; liability, Level". This Buffett variant is off its interim high of Q2 of 2015.
. . .
http://www.advisorperspectives.com/dshort/updates/2016/12/02/market-cap-to-gdp-an-updated-look-at-the-buffett-valuation-indicator
• DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Your Due Dilegence is a must!
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