Macro glossary
Buffett Indicator
The ratio of total US stock market capitalization to US GDP, used as a market-valuation gauge.
Definition
Named for Warren Buffett, who called it 'probably the best single measure of where valuations stand at any given moment.' Readings above 150% are considered significantly overvalued; above 200% extremely so. The ratio peaked near 200% in 2022 and 2000.