Thursday, February 27, 2014

Warren Buffett's favorite indicator?

http://www.bloombergview.com/articles/2014-02-26/even-warren-buffett-can-be-wrong-ritholtz-chart

"Ron Griess, who runs the Chart Store, has been looking at charts for more than 40 years. He makes the observation: “There are no bad indicators. There ARE bad interpretations of indicators. I place the Market Cap/GDP indicator in the class of indicators that is often interpreted poorly.”

Buffett have been preaching that macro forecasting is useless.  These indicators might be interesting to look at, I doubt he'd ever use them to make invest decisions.


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