In One Chart: The ‘Buffett Yardstick’ may be signaling the worst risk-reward setup ever

Original post

Warren Buffett of Berkshire Hathaway says it’s “probably the best single measure of where valuations stand at any given moment.” The “Buffett Yardstick,” as longtime money manager Jesse Felder of the Felder Report calls it, plots the total value of the stock market against the overall size of the economy, and it’s sounding an alarm.