Market Extra: A popular stock-market indicator flashes red as Dow soars to records Friday

An often-cited measure of stock valuations, popularized by Warren Buffett, is affirming a growing fear on Wall Street: equity prices are richer than their fundamental underpinnings.

The so-called “Buffett indicator” measures the market capitalization of the Wilshire 5000 Total MarketXX:W5000, against that of the latest reading of gross domestic product in the third quarter, which stands at $21.16 trillion, as one measure of stock valuations.

The...

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December 05, 2020 at 02:14PM

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