Should we trust bearish signal from Buffett’s indicator – Colin Twiggs

Tip TV’s Nick Batsford discusses charts from Colintwiggs which point to a long-term selling pressure if we take into account the bearish money flow divergence shown on the Dow Jones weekly chart. Batsford also sheds light on Warren Buffett’s favorite measure of market valuation – comparison between total stock market valuations to GDP.

As per Buffett’s indicator, the stock market is way overpriced. So the question is whether we should follow Buffett’s indicator and move out of equities or there is something more to it. Watch this segment to know more.