The Buffett Indicator has recently declined, will the Berkshire Hathaway shareholders meeting reveal whether Buffett has bought the dips?

Warren Buffett's indicator has recently fallen to the low point of last September; is this a buy signal? Berkshire Hathaway will hold its annual shareholders' meeting in Omaha this weekend, and many predict that this may be the last time the 94-year-old Buffett fully participates in the meeting. Investors will closely watch whether Buffett has already tapped into the company's record cash reserves to purchase bargains in the market.

The Buffett Indicator has recently declined; will it repeat last year's major rebound after the yen arbitrage positions were closed?

In an exclusive interview with Forbes in December 2001, Buffett mentioned that the ratio of the total market capitalization of the stock market to GDP can be used to judge whether the overall stock market is too high or too low, so it is generally known as Buffett's indicator. This indicator measures whether the current financial markets reasonably reflect the fundamentals, Buffett's theoretical index indicates a reasonable range of 75% to 90%, and more than 120% indicates that the stock market is overvalued. According to the chart of financial M squares, since 2016, the Buffett indicator has been at a high level for a long time, and hovered above 200 for several months from the end of last year to the beginning of this year, but fell back to 165 in early April, and the current value is 189, which is about the same level as after the short but sharp sell-off triggered by the closing of the yen arbitrage trade last year, when the plunge pulled down the Buffett indicator, and the stock market then rebounded sharply.

This year, various valuation indicators have taken on greater significance as investors attempt to determine whether the sell-off triggered by tariffs has made stock prices cheaper relative to their fundamentals. With the S&P 500 index rebounding 12% from its April lows, these calculations have become more complicated, and traders are beginning to consider whether to bet that the index will rise further or to strengthen hedges and bet that the index will fall back. The index is still down nearly 9% from its historical high in February.

Has Buffett entered the Berkshire shareholder meeting?

Berkshire Hathaway, founded by stock god Warren Buffett, will hold its annual shareholders meeting in Omaha this weekend. Many predict that this may be the last time 94-year-old Buffett fully participates in the meeting. In the company's annual letter to shareholders earlier this year, he told shareholders, "A successor will soon take over as CEO, most likely Greg Abel."

Investors are eagerly awaiting Berkshire's annual shareholder meeting on Saturday, in part to find out whether Buffett has tapped into the company's cash reserves, which ( latest report shows that the company has reached a record $321 billion ) to buy bargains in the market.

Scott Colyer, the CEO of Advisors Asset Management, stated that Buffett "has always been a long-term investor."

More importantly, we need to hear his views on the economy and whether the lower valuations have prompted him to use the cash he deployed for selling stocks to buy stocks again.

In this article, the Buffett indicator has recently declined. Will the Berkshire Hathaway shareholders' meeting reveal whether Buffett has made any low purchases? First appeared in Chain News ABMedia.