Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

<ul><li>The Indian economy is expected to grow at over 7% rate in upcoming years</li><li>Fiscal deficit down to 6.4% of <keyword id="19904293" type="General" weightage="20" keywordseo="GDP" source="keywords">GDP</keyword> in FY24</li><li>Current Account Deficit (CAD) down to 0.7% of GDP </li></ul>With the <keyword id="19908389" type="General" weightage="20" keywordseo="Union-Budget" source="keywords">Union Budget</keyword> 2024 to be presented tomorrow, Finance Minister <keyword id="19916618" type="General" weightage="20" keywordseo="Nirmala-Sitharaman" source="keywords">Nirmala Sitharaman</keyword> is presenting the <keyword id="20613906" type="General" weightage="100" keywordseo="Economic-Survey" source="keywords">Economic Survey</keyword> in the parliament today. Think of the <keyword id="6354872" type="General" weightage="20" keywordseo="economic-survey" source="Orion">Economic Survey</keyword> as a report card of the country's economic performance over the past year, along with inputs and outlook for the coming fiscal year. Here are some crucial highlights from the Economic Survey 2023-24: <h2>Macro-economic indicators</h2>Per the World Economic Outlook in April, the <keyword id="19948494" type="General" weightage="20" keywordseo="global-economic-growth" source="keywords">global economic growth</keyword> was pegged at 3.2% in 2023. In contrast, <keyword id="19895063" type="General" weightage="20" keywordseo="India" source="keywords">India</keyword>'s real GDP grew by 8.2% in FY24, staying above the 8% mark for 3 out of 4 quarters in FY24. Gross Fixed Capital Formation, or investments in long-term, value-generating fixed assets increased by 9% real terms in 2023-24. The government trimmed down fiscal deficit trimmed down from 6.4% of GDP in FY23 to 5.6% of GDP in FY24.The current account deficit, which indicates that the country is a net importer rather than being an exporter, came down to 0.7% of GDP in FY24, as opposed to 2% of GDP in FY23. While retail inflation averaged at 6.7% in FY23, it dropped down to 5.4% in FY24 During FY24, primary markets saw capital formation, or facilitated raising funds worth Rs 10.9 lakh crore, which makes up for around 29% of the gross fixed capital formation. India's market capitalization to GDP ratio is the fifth largest in the world. <h2>Inflationary Trends </h2>Core inflation eased down to 9-year lows, while core goods inflation came down to a 4-year low. However, food inflation continued to stay high, inching up to 7.5% in FY24, as opposed to 6.6% in FY23. This was largely because of adverse weather conditions, which caused a spike in onion and tomato prices and impacted kharif crop production. Going ahead, RBI's short-term outlook remains positive. Assuming a normal monsoon and no extraordinary policy or geopolitical shocks, the inflation is estimated to drop to 4.5% in FY25, and further down to 4.1% in FY26. These are in line with IMF's inflation forecasts, which stand at 4.6% for 2024 and 4.2% for 2025. <h2>Export-Import trends</h2>India's service exports jumped by 4.9% to $341.1 billion in FY24, driven mainly by IT and software services. Apart from being the top remittance recipient globally, with remittances worth $120 billion in 2023, the country also witnessed investment inflows from foreign investors. As of March 2024, India's forex reserves were sufficient to cover over 10 months of projected imports in FY25, and about 98% of all its external debt. The country's external debt to GDP ratio has been largely consistent over the years, standing at 18.7% of the GDP as of March 2024. <h2>Key growth areas to look out for in FY25 </h2>Essential to adopt bottom-up reform approach, with special short to medium term emphasis on structural changes, job and skill creation, addressing challenges faced by MSMEs, managing India's transition towards a green, clean economy, deepening the country's nascent bond market and laying greater stress on tackling quality of health, especially amongst young Indians. Deliberate focus needed on boosting private investment, expanding India's MSMEs, tapping into the potential of India's agriculture sector, manage India's green transition, urgently bridge the employment-education gap and build capacity of states to sustain and complement India's growth. In the medium term, the country's economy is expected to grow at a rate of over 7%.

Economic Survey 2024: GDP grew by 8.2%, to sustain 7%+ growth momentum, fiscal deficit down to 6.4% of GDP

New Delhi [India], June 5 (ANI): The Bharatiya Janata Party (<keyword id="19894848" type="General" weightage="20" keywordseo="bjp" source="keywords">BJP</keyword>)-led National Democratic Alliance (<keyword id="19938590" type="General" weightage="20" keywordseo="NDA" source="keywords">NDA</keyword>) secured a majority in the general elections, securing a third term for Prime Minister Narendra Modi. This victory indicates continuity in policy, particularly in <keyword id="21785272" type="General" weightage="20" keywordseo="infrastructure-spending" source="keywords">infrastructure spending</keyword> and boosting domestic manufacturing, which are expected to support robust <keyword id="19900794" type="General" weightage="20" keywordseo="economic-growth" source="keywords">economic growth</keyword>. However, the NDA's slim margin of victory and the BJP's loss of an outright majority in parliament may slow down more extensive economic and fiscal reforms, potentially impeding <keyword id="20101140" type="General" weightage="20" keywordseo="fiscal-consolidation" source="keywords">fiscal consolidation</keyword> efforts. In fiscal 2023-24, India's real GDP accelerated to 8.2 per cent from 7.0 per cent the previous year, driven by significant gains in gross fixed capital formation as the government's infrastructure programs gained momentum, even as private consumption remained subdued. <keyword id="20227907" type="General" weightage="20" keywordseo="Moodys" source="keywords" meta.keywordsubtype="org" meta.entityname="Moody's" meta.hostid="261" meta.entityid="Moody's">Moody's</keyword> projects India's economic strength to continue, with an anticipated real <keyword id="19972825" type="General" weightage="20" keywordseo="GDP-growth" source="keywords">GDP growth</keyword> of around 7 per cent over the three-year period from fiscal 2023-24 to 2025-26. This growth is expected to benefit from ongoing infrastructure development and digitalization efforts. Despite this outlook, structural weaknesses pose risks to long-term growth potential. High youth unemployment and low productivity growth in the agriculture sector constrain economic expansion. The agricultural sector's modernization has been stalled by political challenges, as evidenced by the repeal of key reforms in 2021 following widespread farmer protests. Additionally, gains in manufacturing have been uneven, limiting labour force diversification away from agriculture, which still accounts for 40 per cent of total employment. Foreign direct investment (FDI) inflows have declined over the past three years, despite a favourable geopolitical climate amid US-China tensions. This trend suggests persistent constraints within India's investment climate. To address these challenges, further structural reforms and enhanced implementation of existing initiatives, such as the production-linked incentive schemes to promote manufacturing, calibrated liberalisation of cross-border trade, and reconsideration of labour reforms, are necessary. The government's focus on fiscal consolidation is expected to continue, but significant improvements in debt ratios and interest servicing have yet to be realised. Since the trough in fiscal 2020-21, the central government's deficit has likely narrowed for three consecutive years. The interim budget for fiscal 2024-25 projects a deficit of around 5 per cent of GDP, aiming for a 4.5 per cent deficit by fiscal 2025-26. However, India's fiscal consolidation post-pandemic has not outpaced other emerging markets in Asia-Pacific, and its fiscal and debt metrics remain weaker than those of Indonesia, the Philippines, Thailand, and other Baa-rated peers globally. India's general government debt is projected to stabilise above 80 per cent of GDP over the next three years, compared to 70.5 per cent in fiscal 2018-19. General government interest payments are forecast to fall to around 24 per cent of general government revenue over the next two years, down from over 28 per cent in fiscal 2020-21, but still higher than the pre-pandemic ratio of less than 23 per cent. While increased budgetary allocations for infrastructure indicate an improvement in spending quality, debt servicing remains a significant portion of expenditure, reflecting ongoing constraints on fiscal flexibility. This situation underscores the need for the incoming government to balance fiscal consolidation with growth-supportive measures. The upcoming final budget for the fiscal year ending March 2025 will provide further insights into India's fiscal policy direction through 2029. As the Modi administration embarks on its third term, the focus will likely remain on sustaining economic growth while addressing the persistent <keyword id="21500054" type="General" weightage="20" keywordseo="fiscal-challenges" source="keywords">fiscal challenges</keyword> that hinder India's long-term economic potential.

Modi 3.0 will offer policy continuity, but BJP's loss of outright majority may slow down fiscal reforms: Moody's

New Delhi [<keyword id="19895063" type="General" weightage="20" keywordseo="india" source="keywords">India</keyword>], March 1 (ANI): In a research report titled "When 8 per cent becomes the new normal: Decoding the new normals of a GDP on swing," the State Bank of India's Economic Research Department unveils key insights into India's economic landscape, shedding light on the recent GDP surge and providing projections for the future. The report highlights the unprecedented growth witnessed in India's economy during the third quarter of FY24, defying all estimates and expectations. India's GDP expanded by a remarkable 8.4 per cent during this period, following consecutive quarters of over 8 per cent growth. This surge has been attributed to effective policy frameworks and perspectives, which have surpassed irrational market expectations. The buoyancy in indirect tax collection, marked by a 32 per cent year-on-year growth amounting to Rs 3.9 lakh crore, further underlines the robustness of the economy. As a result, projections for FY24 indicate a GDP growth of 7.6 per cent and Gross Value Added (GVA) growth of 6.9 per cent. The report suggests that the GDP growth for the fourth quarter could be around 5.9 per cent, indicating a potential attainment of 8 per cent growth for the fiscal year. Significant revisions in both annual and quarterly numbers have led to upward adjustments in the GDP figures for FY22 and FY24. This revision has propelled the Year-to-Date (YTD) GDP growth rate above the 8 per cent mark. However, downward revisions in FY23 GDP numbers have implications for the fiscal deficit, necessitating an upward revision to 5.9 per cent of GDP for FY24. Delving into sectoral performances, the report highlights stellar performances in <keyword id="20788019" type="General" weightage="20" keywordseo="manufacturing-and-services" source="keywords">Manufacturing and Services</keyword>, buoyed by significant growth in industry, manufacturing, and construction sectors. However, the agriculture sector witnessed a decline of -0.8 per cent in Q3, attributed to uncontrollable factors. Moreover, the report underscores remarkable milestones achieved in terms of per capita GDP, with current prices crossing the Rs 2 lakh mark in FY24. Decadal Compound Annual Growth Rate (CAGR) stands at 8.9 per cent, with notable increases observed even in constant prices. Notably, post-pandemic recovery has seen a substantial jump in per capita GDP. The report also analyzes investment and savings trends over the past decade, revealing an increase in Gross Capital Formation (GCF) and gross savings. <keyword id="19964112" type="General" weightage="20" keywordseo="noteworthy" source="keywords">Noteworthy</keyword> is the improvement in the <keyword id="20788020" type="General" weightage="20" keywordseo="incremental-capital-output" source="keywords">Incremental Capital Output</keyword> ratio (ICOR), indicating increasing efficiency of capital utilization and laying the groundwork for sustained economic growth. In conclusion, the findings of the SBI report suggest a promising outlook for India's economy, with the potential for sustained growth at 8 per cent in FY25. (ANI)

SBI report deciphers India's GDP surge and economic projections

Mumbai, India's real <keyword id="44910" type="General" weightage="20" keywordseo="gdp-growth" source="Orion">GDP growth</keyword> will moderate to 6.5 per cent in FY25, mainly due to global headwinds, <keyword id="6355975" type="General" weightage="20" keywordseo="axis-bank" source="Orion">Axis Bank</keyword>'s chief economist <keyword id="926117" type="General" weightage="20" keywordseo="neelkanth-mishra" source="Orion">Neelkanth Mishra</keyword> said on Monday. India's GDP is 7 per cent lower than what it would have been if the pre-pandemic GDP growth trend had continued, Mishra added. It can be noted that last Friday, the Reserve Bank sharply upped its FY24 growth estimate to 7 per cent from the earlier 6.5 per cent. Mishra also pegged the FY24 growth at 7 per cent with upside risks. For FY25, he expects a moderation in the real GDP growth to 6.5 per cent, Mishra said, attributing the same to an intensification of global headwinds in the near future. He said the <keyword id="4644154" type="General" weightage="20" keywordseo="domestic-activity" source="Orion">domestic activity</keyword> is resilient, and the global growth is already proving to be a drag, and added that the same is likely to worsen going ahead. Mishra explained that in the US, the largest economy in the world, the growth is being boosted by fiscal deficit and predicted the long-feared recession to be a reality. "Recession in the US is delayed, not deferred," he said, terming the situation around the fiscal deficit in the US as his biggest concern. The chief economist said he is alarmed by the lack of discussion on this critical aspect, stating that the US fiscal challenges are underappreciated. The US has adopted a pro-cyclical policy stance rather than being the more prudent counter-cyclical one adopted by countries like India, Mishra said. The world has to get used to the "policy inversion" in the US, and the scarcity in dollars, Mishra said, adding that the latter will impact even a country like India. He said while India could easily fund USD 70 billion of a current account deficit, funding even USD 30-40 billion will now get hard. The general elections in India will not lead to much of a change in the policy direction, Mishra said, adding that if he were a corporate, he would decide to start investing soonest because of the demand. He pointed to power generation - coal-based and renewable - as one of the investment areas and added that capital expenditure is already happening in many areas. The Reserve Bank is unlikely to cut its repo rate through 2024 on the volatile food inflation, he said, adding that the headline number will cool down in the year. The government is likely to cut the fiscal deficit by 0.70 per cent each in FY25 and FY26 to meet its stated target of getting the number down to 4.5 per cent, he noted. Foreign rating agencies are unlikely to upgrade the country's rating even if the fiscal gap narrows, he said, adding that there is a need for a lowering in the high debt-to-GDP ratio.

GDP growth will moderate to 6.5% in FY25 on global headwinds: Axis Bank

<ul><li>Goldman Sachs recommended investors channel their inner Taylor Swift when planning for 2024.</li><li>The bank said investors would do well to "follow Taylor Swift's advice in the song from her 1989 album: 'All You Had To Do Was Stay' - invested."</li><li>Goldman Sachs expects the S&amp;P 500 to rise next year, ending 2024 at 4,700.</li></ul>Investors would do well to channel their inner Taylor Swift and stay in the stock market next year, according to a Wednesday note from <a href="https://markets.businessinsider.com/stocks/gs-stock">Goldman Sachs.</a>"At this time next year, portfolio managers will look back and realize the best investment strategy for 2024 was to follow Taylor Swift's advice in the song from her 1989 album: 'All You Had To Do Was Stay' – invested," chief US equity strategist David Kostin wrote.His advice stems from Goldman Sachs' outlook that the <a href="https://markets.businessinsider.com/index/s&amp;p_500">S&amp;P 500</a> will deliver a respectable 6% total return in 2024, with the index likely ending the year at 4,700. This isn't the first time Swift has occupied the head space of Wall Street forecasters and economists this year. The singer's immensely successful Eras tour <a href="https://markets.businessinsider.com/news/stocks/taylor-swifts-economic-impact-catches-attention-federal-reserve-hotel-revenue-2023-7">was highlighted in the Federal Reserve's beige book</a> as one reason why hotels in Philadelphia saw a record surge in revenue over the summer.On Wednesday, Goldman Sachs also pointed to the expansive economic impact of the Taylor Swift effect."The launch of singer-songwriter Taylor Swift's 'Eras' tour represented one of the most notable cultural events of 2023. Global ticket sales are estimated to exceed $1 billion. The tour's economic multiplier effect is significant," Kostin said.The Eras tour is scheduled to end in late November 2024, "roughly corresponding to the 12-month horizon of the market forecast in this report," he added. Kostin's investment recommendation to stay invested in stocks for the next year is based on the expectations that US GDP will grow 2.1% in 2024, profit margins remain stable, equity valuations float in "fairly valued" territory, and the Fed ends its interest rate hiking cycle.That should all translate into continued positive performance from the mega-cap tech stocks, dubbed the "Magnificent Seven," which include <a href="https://markets.businessinsider.com/stocks/aapl-stock">Apple</a>, <a href="https://markets.businessinsider.com/stocks/googl-stock">Alphabet</a>, <a href="https://markets.businessinsider.com/stocks/amzn-stock">Amazon</a>, <a href="https://markets.businessinsider.com/stocks/msft-stock">Microsoft</a>, <a href="https://markets.businessinsider.com/stocks/nvda-stock">Nvidia</a>, <a href="https://markets.businessinsider.com/stocks/meta-stock">Meta</a>, and <a href="https://markets.businessinsider.com/stocks/tsla-stock">Tesla</a>. "The stocks should collectively outperform the remainder of the index in 2024. The seven stocks have faster expected sales growth, higher margins, a greater re-investment ratio, and stronger balance sheets than the other 493 stocks and trade at a relative valuation in line with recent averages after accounting for expected growth," Kostin said.And all of this translates into the idea that investors should stay the course and own stocks throughout next year, <a href="https://www.businessinsider.com/us-economy-recession-prediction-model-2023-10">despite concerns of a potential recession.</a>"As homage to the global icon, our 2024 US Equity Outlook is subtitled 'All You Had To Do Was Stay' – invested. The title of the song from Taylor Swift's 1989 album reflects our baseline forecast that despite intermittent volatility, fund managers will ultimately be rewarded for staying invested through the end of next year," Kostin said.

A Taylor Swift song is the best investment advice for 2024, Goldman Sachs says

<ul><li><keyword id="6358963" type="DEFINITION" weightage="60" keywordseo="Warren-Buffett">Warren Buffett</keyword>'s preferred market indicator is approaching a record high, suggesting <keyword id="6354298" type="DEFINITION" weightage="60" keywordseo="Stocks">stocks</keyword> are overpriced and could tumble soon.</li><li>The "<keyword id="7184601" type="UNKNOWN" weightage="60" keywordseo="Buffett-Indicator">Buffett indicator</keyword>" compares the total value of the <keyword id="6357440" type="DEFINITION" weightage="60" keywordseo="Stock-Market">stock market</keyword> to quarterly <keyword id="35050" type="CITY" weightage="60" keywordseo="gdp">GDP</keyword>, gauging whether it's overvalued or undervalued relative to the size of the economy.</li><li>The ratio climbed past 180% on Tuesday, not far off its peak of 187% in the second quarter, when GDP was 8% lower.</li><li>Buffett praised the gauge as "probably the best single measure of where valuations stand" and called it a "very strong warning signal" of a market crash.</li><li><a href="https://www.businessinsider.com/international?r=US&amp;IR=TIR=T">Visit Business Insider's homepage for more stories</a>.</li></ul>Warren Buffett's favorite market gauge is flirting with a fresh high, signaling stocks are overvalued and could plunge in the coming months.The "Buffett indicator" divides the total market capitalization of a country's publicly traded stocks by its quarterly gross domestic product. Investors use it as a rough measure of the stock market's valuation compared with the size of the economy.The <a href="https://markets.businessinsider.com/index/wilshire-5000">Wilshire 5000 Total Market Index</a> surged to $38.2 trillion on Tuesday, while the <a href="https://www.bea.gov/news/2020/gross-domestic-product-3rd-quarter-2020-second-estimate-corporate-profits-3rd-quarter">latest official estimate</a> for third-quarter GDP is $21.2 trillion.Dividing those numbers shows that the Buffett indicator has cleared 180% — not far off its peak of 187% in the second quarter, when GDP was about 8% lower, and <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-indicator-nears-record-high-signals-stocks-risky-overvalued-2020-11-1029769972">a big jump from 170% in early November</a>.Read more: <a href="https://www.businessinsider.com/investing-advice-tips-growth-fund-manager-dennis-lynch-morgan-stanley-2020-11" target="_blank" rel="noopener noreferrer">Dennis Lynch has tripled his clients' money since 2010. The star fund manager shares 5 bets he's seizing on for 2021 and beyond — and explains how he avoids making costly investing decisions.</a>Buffett described his namesake gauge in a <a href="https://archive.fortune.com/magazines/fortune/fortune_archive/2001/12/10/314691/index.htm">Fortune magazine article</a> in 2001 as "probably the best single measure of where valuations stand at any given moment."The famed investor and <keyword id="6362665" type="ORGANIZATION" weightage="60" keywordseo="berkshire-hathaway">Berkshire Hathaway</keyword> CEO added that when the ratio spiked to a record high during the dot-com boom, it "should have been a very strong warning signal" of a crash. The Buffett indicator also surged in the months before the 2008 financial crisis, giving it a solid track record of predicting market downturns.However, the gauge is far from perfect. Comparing the current value of stocks to the previous quarter's GDP isn't ideal, US-listed companies don't necessarily contribute to the American economy, and GDP doesn't account for overseas income.Read more: <a href="https://www.businessinsider.com/stocks-to-buy-31-set-to-become-growth-engines-hsbc-2020-12" target="_blank" rel="noopener">HSBC says buy these 31 global stocks that are exposed to the pandemic's biggest tech disruptions and set to become growth engines of the future</a>The COVID-19 pandemic has also caused massive disruptions to economic activity and temporarily depressed GDP, boosting the Buffett indicator's readings in recent months. But stocks appear extremely expensive by <a href="https://markets.businessinsider.com/news/stocks/stock-market-outlook-valuations-expensive-morgan-stanley-wilson-positive-news-2020-11-1029797383">several other measures</a>, suggesting the gauge isn't wildly off the mark.Here's the St. Louis Federal Reserve's version of the Buffett indicator (both market cap and GDP are indexed to the fourth quarter of 2007):<div type="image" title="Buffett Indicator_Dec 2020" height="799" width="950" msid="79531352" hostid="261"></div>

Warren Buffett's favorite market indicator nears record high, signaling stocks are overvalued and a crash may be coming

<ul><li><keyword id="6358963" type="DEFINITION" weightage="60" keywordseo="Warren-Buffett">Warren Buffett</keyword>'s preferred stock-market gauge hit a record high, signaling stocks are overvalued and a crash could be coming.</li><li>The "<keyword id="7184601" type="UNKNOWN" weightage="60" keywordseo="Buffett-Indicator">Buffett indicator</keyword>" divides the total value of publicly traded stocks by quarterly <keyword id="35050" type="CITY" weightage="60" keywordseo="gdp">GDP</keyword>.</li><li>It is "probably the best single measure of where valuations stand at any given moment," Buffett <a href="https://archive.fortune.com/magazines/fortune/fortune_archive/2001/12/10/314691/index.htm">wrote in Fortune magazine in 2001</a>.</li><li>The famed investor and <keyword id="6362665" type="ORGANIZATION" weightage="60" keywordseo="berkshire-hathaway">Berkshire Hathaway</keyword> boss said it was a "very strong warning signal" when the indicator peaked just before the dot-com bubble burst.</li><li><a href="https://www.businessinsider.com/international?r=US&amp;IR=TIR=T">Visit Business Insider's homepage for more stories</a>.</li></ul>Warren Buffett's favorite stock-market indicator has climbed to a record high, signaling stocks are overvalued and another crash could be coming.The so-called "Buffett Indicator" takes the combined market capitalizations of a country's publicly traded stocks and divides it by quarterly gross domestic product. Investors use it to gauge whether the <keyword id="6357440" type="DEFINITION" weightage="60" keywordseo="Stock-Market">stock market</keyword> is overvalued or undervalued relative to the size of the economy.Buffett, a billionaire investor and the boss of Berkshire Hathaway, described it as "probably the best single measure of where valuations stand at any given moment" in a <a href="https://archive.fortune.com/magazines/fortune/fortune_archive/2001/12/10/314691/index.htm">Fortune magazine article</a> in December 2001.The indicator has its flaws, including GDP not counting income earned overseas, and US-listed companies not necessarily contributing to the US economy.Yet it has a strong track record of predicting future downturns. For example, it surged to 118% just before the dot-com bubble burst in 2000, and topped 100% before the 2008 financial crisis."Nearly two years ago the ratio rose to an unprecedented level,"Buffett said in the 2001 Fortune article. "That should have been a very strong warning signal."The Buffett indicator now sits at a <a href="https://fred.stlouisfed.org/graph/?g=qLC">historic high of 179%</a>, reflecting the US stock market's rapid rebound since the coronavirus sell-off, and the <a href="https://www.businessinsider.com/us-gdp-falls-first-quarter-impact-coronavirus-economy-recession-economy-2020-4?r=US&amp;IR=TIR=T">4.8% slump in annualized GDP last quarter</a>. Its current level is well above the average reading of 107% over the past 20 years.<a href="https://markets.businessinsider.com/news/stocks/bond-king-gundlach-reopens-stock-market-shorts-amid-coronavirus-threat-2020-4-1029134463">Several market commentators</a> have questioned whether US stocks are overvalued in light of slowing economic growth, surging unemployment, and other alarming data in recent weeks.The latest Buffett indicator reading will likely add more weight to their worries.<div type="image" title="Buffett Indicator" height="778" width="1113" msid="75471535" hostid="261"></div>Read the original article on <a href="https://www.businessinsider.com/buffett-indicator-surges-record-high-signaling-potential-crash-2020-4">Business Insider</a>

Warren Buffett's favorite stock-market indicator hits record high, signaling a crash could be coming

<ul><li><keyword id="6358963" type="DEFINITION" weightage="60" keywordseo="Warren-Buffett">Warren Buffett</keyword>'s favorite stock-market gauge has spiked to a record 170%, underscoring the stark divide between sky-high US stock prices and the pandemic-hit economy.</li><li>The "<keyword id="7184601" type="UNKNOWN" weightage="60" keywordseo="Buffett-Indicator">Buffett indicator</keyword>" divides the combined market capitalization of publicly traded US companies by quarterly GDP.</li><li>"It is probably the best single measure of where valuations stand at any given moment," Buffett <a href="https://archive.fortune.com/magazines/fortune/fortune_archive/2001/12/10/314691/index.htm" target="_blank" rel="noopener">wrote in a Fortune magazine article in 2001</a>.</li><li>The billionaire investor and <keyword id="6362665" type="ORGANIZATION" weightage="60" keywordseo="berkshire-hathaway">Berkshire Hathaway</keyword> boss added that the indicator spiking before the dot-com crash should have been a "very strong warning signal."</li><li><a href="https://www.businessinsider.com/">Visit Business Insider's homepage for more stories</a>.</li></ul>Warren Buffett's favorite market indicator has surged to a record level, highlighting the striking divide between the booming US stock market and the depressed domestic economy.The so-called <a href="https://fred.stlouisfed.org/graph/?g=qLC" target="_blank" rel="noopener">"Buffett indicator"</a> takes the combined market capitalization of a country's publicly traded <keyword id="6354298" type="DEFINITION" weightage="60" keywordseo="Stocks">stocks</keyword> and divides it by quarterly gross domestic product. Investors use it to gauge whether the stock market is overvalued or undervalued relative to the size of the economy.The Wilshire 5000 Total Market Index was <a href="https://ycharts.com/indicators/wilshire_5000_index_market_cap">valued</a> at about $33 trillion as of Wednesday's close, while the official advance estimate for second-quarter US GDP, <a href="https://www.bea.gov/sites/default/files/2020-07/gdp2q20_adv.pdf">released on Thursday</a>, is $19.4 trillion. Based on those figures, the Buffett indicator now stands at about 170%, a historic high.Buffett described the metric in a <a href="https://archive.fortune.com/magazines/fortune/fortune_archive/2001/12/10/314691/index.htm" target="_blank" rel="noopener">Fortune magazine article</a> in December 2001 as "probably the best single measure of where valuations stand at any given moment."The famed investor and Berkshire Hathaway CEO added that the ratio hitting a record high during the dot-com boom "should have been a very strong warning signal" of the crash to come.The Buffett indicator has its flaws, including the fact that it compares current market capitalizations to GDP in the previous quarter. GDP also doesn't account for income earned overseas, and US-listed companies don't necessarily contribute to the US economy.Shutdowns and stay-at-home orders during the coronavirus <keyword id="43587" type="ORGANIZATION" weightage="60" keywordseo="pandemic">pandemic</keyword> are also largely responsible for the sharp decline in second-quarter GDP, meaning the Buffett indicator spiking could prove to be a temporary blip.However, the measure has a solid track record of predicting past downturns. It spiked before the dot-com <keyword id="4662213" type="PERSON" weightage="60" keywordseo="Bubble">bubble</keyword> burst and surged in the months before the 2008 financial crisis.Here's the <a href="https://fred.stlouisfed.org/graph/?g=qLC#0">St Louis Fed's version of the Buffett indicator</a> (both market cap and GDP are indexed to the fourth quarter of 2007):<div type="image" title="BuffettIndicator_Q22020" height="573" width="673" msid="77267974" hostid="261"></div>

You Searched For "investment to GDP ratio" and got 8 results

Economic Survey 2024: GDP grew by 8.2%, to sustain 7%+ growth momentum, fiscal deficit down to 6.4% of GDP

Ira Alok Puranik

Modi 3.0 will offer policy continuity, but BJP's loss of outright majority may slow down fiscal reforms: Moody's

ANI

SBI report deciphers India's GDP surge and economic projections

ANI

GDP growth will moderate to 6.5% in FY25 on global headwinds: Axis Bank

PTI

A Taylor Swift song is the best investment advice for 2024, Goldman Sachs says

Matthew Fox

Warren Buffett's favorite market indicator nears record high, signaling stocks are overvalued and a crash may be coming

Theron Mohamed

Warren Buffett's favorite stock-market indicator hits record high, signaling a crash could be coming

Theron Mohamed

Warren Buffett's favorite market indicator spikes to record high after US GDP plunges

Theron Mohamed

Popular Keywords

Buying Guides