Buffett-Like Indicator Points to “Frothy” Markets

Deutsche Bank’s chief economist shared his view that the equity markets are “entering frothy territory” using an indicator similar to one used by Warren Buffett. This according to a recent CNBC article. Mikihiro Matsuoka of Deutsche Bank explains in a recent note that, “an eventual turnaround of monetary policy after a long period of post-[great financial crisis] accommodation is under way in major developed countries which, in our view, raises the returns on safe assets… Read More

A Buffett Market Valuation Indicator

There is a mixed bag of outlooks concerning the current bull market and its staying power. In an article posted yesterday on CNBC.com, Validea CEO John Reese describes one metric used by Warren Buffett to gauge conditions on the ground and signal where things might be headed. The Buffett mantra of focusing on business fundamentals rather than hearsay transcends to today’s prickly political landscape. Reese writes that the Berkshire Hathaway CEO believes the “performance of companies… Read More