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"The Buffett Indicator" is showing a Call signal! After experiencing severe turmoil, is the U.S. stock market facing a historical bottom-buying opportunity?
The Indicators are currently at 180%, close to the levels after last year's brief severe sell-off, indicating that the stock market is relatively cheap in terms of valuation. However, in comparison, this valuation indicator is still higher than the general levels observed during past market bottoms, including the sell-off triggered by the COVID-19 pandemic in early 2020, when the indicator dropped to nearly 100%.
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