• The Buffett indicator measures total market capitalization to GDP. It is used as a broad way of assessing whether the country’s stock market is overvalued or undervalued, compared to a historical average. Latest Buffet Indicator Data
  • In combination with implementing a better DCA strategy, I’ve also been re-allocating a percentage of my stock assets. Since 2017 I’ve been selling 10% of my stock market index investments every year that the Buffett Indicator1 states that the stock market is significantly overvalued.
  • With the money I’m pulling out of the stock market I can either pay off debt/mortgage, real estate investments, or fine wine investments. Sometimes I’ll move to cash so I have dry powder for implementing the better DCA strategy.

  1. Buffett Indicator: Where Are We with Market Valuations?. gurufocus (accessed 2021)