Aug. 13, 2025

The Buffet Indicator Has Hit 2x Standard Deviation for the 3rd Time Since 1950

The Buffet Indicator Has Hit 2x Standard Deviation for the 3rd Time Since 1950
The Buffett Indicator is a measure of the total market capitalization of publicly traded companies to the Gross Domestic Product (GDP).
 
Warren Buffett called it "probably the best single measure of where valuations stand at any given moment".
 
The Buffett Indicator has hit 2 times standard deviation for the 3rd time since 1950.
 
Two times standard deviation is double the average value. This means the overall stock market is double the average value. 
 
 Previously, the Buffett Indicator hit this level in 1969 and 2000. Both times the stock market had significant downside corrections (about 50%).
 
This indicator is worth paying attention to. It demonstrates that the stock market is significantly over-valued. Downside market risk is elevated.
 

 

How do you take advantage of future potential upside while protecting your downside?

 

Annuities offer unlimited upside potential while guaranteeing the principle against loss. 

- This is the "Golden Era" of fixed assets. The best rates in 40+ years, insured with guarantees.

- If you own an annuity 2+ years old, I strongly recommend comparing to the newer more profitable products.

- Many of my clients are earning 2-10x increased returns annually than their previous annuity products!

 

   - Your Personal Bank policies are insured, with guarantees, income tax-free, highly liquid, and likely to increase returns for the next 5-10 years due to higher bond yields.

 

   - Fixed Index Annuities have the best upside potential in 40+ years with no downside market risk. The principle is guaranteed. Some offer signing bonuses up to 17+% with strong upside potential.

 

   - Guaranteed Lifetime Income is the highest in 40+ years. Some products offer up to 30% signing bonus. Other products offer up to 10% increased guaranteed lifetime income each year you defer.