The Warren Buffett indicator is top of mind for many investors trying to figure out whether markets have entered bubble territory. Buffett uses the indicator to judge value. When a stock market is trading at 70% to 80% of GDP, it’s a good time to buy. When the market is equal to 133% of GDP, then hello, bubble. Watch this video from Fortune to find out what Buffett’s indicator says about the market in China. To find out what the indicator says about the U.S. markets, read Doug Short’s post here.
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