Thinking Long Term

This webpage is a sleek, no-nonsense tracker of the legendary Buffett Indicator—the market cap-to-GDP ratio—historically referenced as a gauge of overall market frothiness. It presents a table of Buffett Ratios recorded during some of the most infamous market crashes, highlighting just how inflated things got before reality checked in.

Below this retrospective, the site displays the most recent Buffett Ratio, dynamically updated whenever fresh GDP data drops, ensuring users always have the latest market-to-reality reading.

For those hunting the next market reckoning, the site also provides a speculative “Danger Zone” range where a major correction could be expected if history rhymes. Based on the current trajectory, that range sits around 208.35% – 232.65%. Will it hold? Time (and the Fed) will tell.

Past Events and Ratio

EventDateRatioRecovery DateRatio
Black Monday19/10/87~65%NDND
Dot-Com24/03/00136.9%10/10/0244.7%
Financial Crisis 11/10/07105.2%06/03/0948.0%
C-1919/02/20157.4%23/03/20102.4%
Everything Bubble04/01/22198.1%13/10/22142.2%

Actual

DateGDPFTW5000Ratio
27/03/25
27/02/2529,719,64758616.81197.23%
30/01/2529,700,58061093.30205.69%
19/12/2429,374,91458841.50200.31%
26/09/2429,354,32157457.47195.74%
27/06/2429,016,71454541.59187.97%
28/03/2428,624,06952915.82184.86%