Alarm! Hindenburg Omen Flashes Warning… Again! As Does The Buffet Indicator And Shiller’s CAPE Ratio
The comments below are an edited and abridged synopsis of an article by Confoundedinterest17
The famous Hindenburg Omen, the technical indicator that predicted the 2008 correction in the stock market, has just flashed ‘alarm’ again.
To be sure, there hasn’t been a major correction in the stock market since the financial crisis, primarily because the Federal Reserve has constantly goosed the markets since late 2008.
Just as the Shiller CAPE ratio is signalling ‘alarm,’ so is the Buffett Indicator.
“I have no doubts that the Fed will withdraw its monstrous stimulus from the market after the Jackson Hole Fed conference… NOT!!!!”
Maverick Capital posted a chart (included with article) showing the Buffet Indicator (US equity market cap/GDP) and US Corporate Profits/GDP. All the author has to say is: Simply unsustainable.