U.S. Stocks In Warren Buffett's Danger Zone

The indicator below is called the "Buffett Indicator" because Warren referenced it during the late 1990's as a tool he used to help keep out of harms way during the mania.

He also used this signal back in 1972 to help move out of harms way during the 1973 - 1974 crash, and then re-buy at the peak of market despair.

Today the indicator is signaling the market is currently at a point far more dangerous than the 1973 and 2007 tops, trailing only the peak of the 2000 mania. Click for larger image:


  1. does this chart include the changes made in gdp calculation over the years?


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