... to the real size of the economy. How to interpret the indicator values? High (> 100%) If the indicator exceeds 100%, it means that the stock market is worth more than the country's economy. If it rises above 150-200%, as in 1999 before the dot-com crash, it may signal overheating and a high probability of a crash. In 2021, the Buffett indicator for the US reached a record 230%, which indicated that stocks are strongly overvalued. Low (< 100%) If the indicator is below 100%, it may mean that ...

... levels, raising concerns among investors about the potential formation of a bubble in the stock market. The situation on the stock market, characterized by high overvaluation and overbought conditions, raises questions about the possibility of a market crash. In this article, we will analyze the Buffett Indicator, its significance in the context of a stock bubble, and provide recommendations for investors. The Buffett Indicator Hits Record Levels: A Sign of Overheating in the U.S. Stock Market The ...

.... As demonstrated by research in quantitative investing, in the long term, it is the stocks that consistently increase profits that often deliver the most reliable long-term gains. 3. You Should Shift to Defensive Stocks if You Think the Market Will Crash Every few months, analysts and television experts begin to predict an imminent stock market crash. Subsequently, analysts recommend defensive stocks capable of withstanding a recession or bear market. These include companies in consumer goods and ...

... global oil market experienced a surge in prices. Concurrently, the exchange rate of the ruble to the dollar stabilized. However, the enthusiasm of many was short-lived. In the second quarter of 2019, prices plummeted by 5%. Many were puzzled: was this a crash or a correction? To complicate matters, the situation was exacerbated by issues related to contaminated oil being transported through pipelines to Europe. In 2018, the global oil market experienced a rise in prices. Concurrently, the exchange rate ...

... annual shareholder meeting of Berkshire Hathaway confirmed: Buffett remains cautious, holding a record amount of cash while continuing to sell stocks. The company has not conducted buybacks for three consecutive quarters and warns of a potential market crash. What does this mean for investors? Record Cash: $347.7 Billion at Berkshire Hathaway In 2025, the conglomerate Berkshire Hathaway, led by Warren Buffett, reached a historic milestone in cash reserves. By the end of the first quarter of 2025, ...