Buffett Yarkstick

Alan's Page

The following is a scatterplot of Buffett Yardstick using historical data downloaded from St. Louis Fed.

Buffett called the Yardstick the best single measure of where valuations stand at any given moment. The Buffett Yardstick = total U.S. stock market capitalization as a percentage of GDP, is immune to company-level accounting issues, although it is not perfect.

Current Buffett Index = 1.44 is 97% from long-term average.

Record: max= 1.61 ; min= 0.32 ; mean= 0.73

The plot is produced by R, and will be updated on a quarterly basis.

Note: If you use Chrome, you might need to clear browsing data by pressing Ctrl+Shift+Delete (on Mac the shortcut is: Shift+Command+Delete), and then refresh your screen to see the most updated plot.

In no event shall the author be liable for any direct, indirect, incidental, special, consequential or exemplary damages including damages for loss of revenue, anticipated profits, loss of business, goodwill, or other tangible or intangible losses resulting from the use of any data or information provided in this article.