Market Valuation

S&P 500 Yield vs. 10 Year AA Corporate Bond Yield

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S&P 500 Yield vs. 10 Year U.S. Treasury

Data Source:

Total U.S. Market Cap / U.S. GDP – This is Buffett’s favorite market valuation metric. According to Buffett, “If the percentage relationship falls to the 70% or 80% area, buying stocks is likely to work very well for you. If the ratio approaches 200%–as it did in 1999 and a part of 2000–you are playing with fire.”

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Related links:

  1. Buffett’s metric says time to buy – Fortune

S&P 500 Price / Peak Earnings

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Related links:

P/Es & Yields on Major Indexes – WSJ.com

3 thoughts on “Market Valuation

  1. Pingback: Market Valuations Updated | GregSpeicher

  2. Pingback: Market Valuation Update – September 2, 2010 | GregSpeicher

  3. Pingback: Market Valuation Update – October 7, 2010 | GregSpeicher

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