Buffett Indicator at 228% of GDP
This is worth a read here (or click on the image below) below and does a pretty good job of articulating why I mostly just can't get excited about stocks right now (thanks to Lord Stuart Wemyss for the Twitter share).
At 228% of GDP that's way out there, and far above the wildest valuations of the pre-tech wreck mania.
Sure, things can always moon higher, and recent momentum suggests they will, but it's hard to see anything approaching compelling 10-year returns from here.
In fact, I ended up buying an investment property last year, as I figured using some leverage will see me probably getting better returns over a 10-year timeframe.
I could potentially get a bit more interested in global stocks if the S&P 500 falls 30 per cent, though even that would only bring the CAPE ratio back to ~25, which itself is hardly cheap.
Pass.
