The Buffett Ratio (Market Value to GNP) Increases

12/14/2010 0 comments

Warren Buffett created a ratio of the market value of all US publicly traded securities to Gross National Product (GNP) as a yardstick to measure stock market valuation

MyPlanIQ has been tracking this index and presents the current status. This will be reported every other week (bi-weekly)

On Dec 10, 2010, the ratio of the total stock market capitalization to GNP was 88%.

This compares to November 26, 2010, when the ratio was 84% which is in the fair market range.

click to enlarge images

The trend is clearly increasing as the appetite for equities remain -- especially in light of fixed income assets having a poor outlook.

The valuations are still in the fair market region, which would point to a continuing increase in the value of equities in the short term.

 

labels:investment,

Symbols:AGG,BND,CIU,CSJ,DBA,DBC,EEM,EFA,GSG,HYG,ICF,IEF,IWM,IYR,JNK,LQD,MBB,MDY,MUB,PHB,QQQQ,SHV,SHY,SPY,TLT,USO,VEU,VNQ,VWO,

 



comments 0   Share/Bookmark
Register for FREE No Credit Card Required
Or Start FREE 30-day trial now >>

Members enjoy Free features

  • Customize and follow a diversified strategic allocation portfolio for your 401k, IRA and brokerage investments within minutes
  • Receive monthly or quarterly re-balance emails
  • Enter funds and percentages in your portfolio, see its historical performance and receive ongoing rebalance emails
  • Real time fund ranking and selection for your plans
  • Quality retirement investing newsletter emails
  • Fund ranking and selection for your plans

Tens of thousands of users have signed up!

Join Now (Free)
No Credit Card Required

User names can only consist of alphabetic and
numeric characters.(eg: 0-9a-zA-Z)
I agree to the Terms of use

Login With Facebook:

Get Started Now. It's Free!

Get portfolio suggestions for your
401k plan or brokerage accounts

Powered by MyPlanIQ
You have created an account on MyPlanIQ.com by using this email "", please login MyPlanIQ account or reset your password.