... two standard deviations , indicating extreme market overvaluation. This indicator has long surpassed levels observed during the dot-com bubble of the late 1990s and before the 2008 financial crisis, serving as a warning signal of a potential stock market bubble. What is the Buffett Indicator and what does it signal? The Buffett Indicator (Buffett Indicator) is a measure that compares the total value of the U.S. stock market to the size of the economy. In simple terms, it is calculated as the ratio of ...

... growth. However, some experts warn that such high valuations have historically preceded long-term market yield declines and increased volatility. Investor Concerns: A Repeat of the Dot-Com Bubble? The last time CAPE exceeded 44 was during the dot-com bubble in 2000, after which the market plummeted by more than 50%. Many traders today are comparing the current situation to that period: High valuations of technology company stocks; A significant influx of retail investors willing to overpay for assets; Expectations of further growth ...

... situation? Retail investors are investing in stocks at record levels: Why is this happening and what are the risks? Retail investors have set a new record for the volume of investments in the stock market, exceeding even the levels of the dot-com bubble. Despite the market turbulence, capital is being directed en masse into tech stocks, and the total inflow of funds into the market for the week amounted to $25 billion - one of the largest figures in recent years. Why is this happening, and what consequences can investors ...

... Situation in Russia Currently, the Central Bank of Russia is observing signs of credit overheating in the corporate lending market. As reported by the head of the department at the Central Bank, annual growth rates of loans in this sector remain high,... ... rate and the associated increase in borrowing costs. However, the central bank emphasizes that we have not yet reached a credit bubble, as measures have been implemented to curtail further growth. Why Is This Happening? High Interest Rates: The Central Bank ...

... — Before the crisis, the indicator was above 100%, and during the crisis, it fell below 60%. This gave investors the opportunity to buy shares at low prices. 2021 (record market overheating) — The indicator reached 230%, which indicated a possible bubble. In 2022, the market began to correct, and many investors faced losses. How can an investor use the Buffett indicator? Determining the stages of the market High values (> 150%) → the market may be overheated, corrections or a crisis are possible. Average values ...