1971 – 1973
In April 1971, the Buffett Indicator moved above its +1 standard deviation range. It continued to move along this range until January 1973 when the indicator, Dow and S&P500 started to decline. This decline accelerated after the January 20, 1973 U.S. Presidential Inauguration. Note that a quick decline and rally occurred in the Dow and S&P500 during December 1972.
2021 – 2024
In November 2021 the Buffett indicator hit its peak above the +2 standard deviation range before moving lower in 2022. During the U.S. Presidential election week of November 4, 2024 the indicator moved above its +2 standard deviation range again. Note that the December 2024 decline and rally is similar to what occurred in December 1972. A long term decline would be expected to start after the January 20, 2025 Presidential Inauguration.
Note that this information is for educational purposes only and not a recommendation.
Charts courtesy of StockCharts.com.
