Market Value of Equities to GNP (Buffett Indicator)
Market value of US nonfinancial corporate equities as a percent of GNP.
The market value of equities issued by US nonfinancial corporations (Federal Reserve Financial Accounts, Z.1) divided by US gross national product (BEA). Warren Buffett described market value relative to GNP as "probably the best single measure of where valuations stand at any given moment" in Fortune, December 10, 2001.
- Data source
- www.federalreserve.gov
- Series
- z1: LM103164105.Q, fred: GNP
- Frequency
- Quarterly
- Unit
- Percent
- Scoring direction
- Higher readings are treated as more dangerous. How scores are calculated
Sources for this description
- https://www.federalreserve.gov/releases/z1/
- https://fred.stlouisfed.org/series/GNP
- https://www.berkshirehathaway.com/2001ar/FortuneMagazine%20DEC%2010%202001.pdf