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...
DISCRIPTION The stock market cap to GDP ratio has become known as the Buffett Indicator in recent years, as Warren Buffett commented that he believes it is “probably the best single measure of where valuations stand at any given moment.” CALCULATION 100*VALUE OF ALL STOCKS IN COUNTRY/GDP OF COUNTRY 100*wilshire5000/gdp
It's just the 200 day moving average / divided by the price. Shows you where Buffet would buy and sell at.