No. of Recommendations: 8
In 2001, the Buffett indicator was the ratio of the size of the US market to the against the US economy, Since that time, US companies earnings from foreign sources has soared. Even BRK is now in the Japanese market. Perhaps a better indicator would be to track earnings from foreign sources and add a percentage of the world GDP less US GDP to the denominator.
(US market capitalization)/((1-x)*us GDP + x * World GDP ex US GDP)
"x" would be the percentage of earnings received from foreign sources.
Craig
Revenues from foreign sources - about 40%
globalxetfs.com - Sector views sp sensitivity to global factors.
