WARREN BUFFETT INDICATOR AND MARKET CORRECTION
The profitability, capitalization and portfolio of Berkshire Hathaway, which is headed by the famous billionaire and investor Warren Buffett were considered. The analysis of the "W. Buffett indicator", which characterizes the degree of "overvaluation" of the stock market, is carried out. The data for 50 years on the dynamics of the US GDP, the Wilshire Total Market Index of the US, the Buffett indicator or TMC / GDP are given. A model of the expected return on investments in the stock market in the next 8 years is presented, which is based on the TMC / GDP indicator. The influence of quantitative easing (QE) programs of the Fed, lowering interest rates and volumes of buyback companies (since 1999) to support the stock market is indicated.