Bulletin

The Buffett Indicator And You

In his 2001 interview with Fortune, Warren Buffett pointed to what he called the “best single measure of where valuations stand at any given moment”. This metric has become known as the “Buffett Indicator”. It measures the total value of all publicly traded securities as a percentage of the countries total business (i.e. GNP). It is currently indicating something important.

On The Margin

There is an old adage that says “correlation does not equal causation”. Just because two metrics, or trends, move in the same direction at the same time doesn’t mean that one causes the other. But while we shouldn’t assume that correlation equals causation, there are times – on the margin – when interesting correlations should cause us to look deeper. This is one of those times.

A Garbage Powered DeLorean

In 1989, the second installment of the Back to the Future trilogy came out. I still remember dreaming of owning Marty McFly’s hoverboard. Biff Tannen’s hoverboard was unsafe, obviously. And then, there was the garbage-powered DeLorean: Savings Equals Investment In my last post, we discussed the importance of saving in determining where we are in […]