Buffett Indicator by QuantNomad

cycles fundamental forecasting buffett buffet buffetindicator spx spx500 usgdp

This is an open-source version of the Buffett indicator. The old version was code-protected and broken, so I created another version.

It's computed simply as the entire SPX 500 capitalization divided by the US GDP. Since TradingView does not have data for the SPX 500 capitalization, I used quarterly values of SPX devisors as a proxy.

I tried to create another version of the Buffett indicator for other countries/indexes, but I can't find the data. If you can help me find data for index divisors, I can add more choices to this indicator.

It's interesting to see how this indicator's behavior has changed in the last few years. Levels that looked crazy are not so crazy anymore.

Disclaimer
Please remember that past performance may not be indicative of future results.
Due to various factors, including changing market conditions, the strategy may no longer perform as well as in historical backtesting.
This post and the script don’t provide any financial advice.

My First Live Course: qntly.com/101
Pine Programming v5: qntly.com/pineprog
Adv.Pine Use-Cases: qntly.com/advpine

Hire Me: qntly.com/hirepine
Telegram: qntly.com/tel

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

Want to use this script on a chart?