Yet another down day for the market. Nothing unexpected if you follow our work here
Now, this is the stuff nightmares are made off. According to Mr. Buffett’s own general valuation indicator the market is about to crash…….BIG Time.
Just look at it, today’s Everything Bubble is twice as big as nearly every other peak that preceded any market crash of importance. In other words, stocks crazy expensive. Surely the stock market is about to collapse to the tune of 50% + just to reach its historic norm.
Yet, the analysis above is too simplistic in its nature and doesn’t offer anything in terms of timing.
For instance, expensive things can get even more expensive and stay there. For instance, 2020-2022 episode is a perfect example. You could have made an argument that stocks are about to collapse based on Buffett indicator alone. They did, “due to covid”, but then quickly recovered to new all time highs where they have been enjoying stratospheric valuation levels ever since.
Sure, I agree. At some point stocks will collapse. Having said that, before that happens yet another upside surprise might be in the books. If you would like to find out what the stock market will do next and when the next “crash” will occur, please Click Here.