Yesterday, the Motley Fool reported that Warren Buffett's Berkshire Hathaway was on a buying spree during the recent bear market. Apparently, the Oracle of Omaha isn't concerned that his famous Buffett Ratio remains in bearish territory.
In a December 2001 Fortune article, Buffett observed that when the ratio of the value of all stocks traded in the US to nominal GNP exceeds 200%, its best to stay away from buying stocks. He opined that when readings are in "the 70% to 80% area, buying stocks is likely to work very well."
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