Buffet Indicator insightsDespite the recent downturn in the equity market, the Total Market Cap over GDP - also known as Buffet Indicator - clearly shows that there still might be a significant market crash ahead.
Assuming the market will reach the " Fairly valued " territory, it means that a further 25% decline is to be expected.
Assuming instead that the market will ultimately become " Significantly Undervalued " - as it happened after both most recent market crashes (except after COVID due to the massive Fed intervention) - we should expect a further 50% decline.
