Warren Buffett's Favorite 'Single Best Measure' For Equities Flashes Buying Signal As US Stocks Rebound
A valuation metric, which Berkshire Hathaway chair Warren Buffett once called the "single best measure of where valuations stand," is now signaling that U.S. equities could be trading at relatively attractive levels. What Happened: Known as the “Buffett Indicator,” the ratio compares the total value of publicly traded U.S. companies, tracked by the Wilshire 5000 Index, to the country's gross domestic product. The measure currently sits at around 180%, reported Bloomberg, roughly the same level s