HESAF - Value Hunting Overseas
Expensive US Market
In January, I wrote this article, warning about a possible downturn in the US stock market in light of the then all-time-high Warren Buffett Indicator (i.e., the Market-Cap-to-GDP ratio of 149% vs. the historical average of 75%). No matter whether you like the theory of this indicator or not, the US market has experienced high volatility and has come down almost 3% since then (see below).
Source: Yahoo Finance; data as of 5/27/2018.
As we speak, the overall US stock market should still be treated as significantly overvalued, given the current