ZYTrade Editor: Did we just climb the Mt Everest of asset valuations? Looking at the M2 money supply, house prices, and the Buffett indicator, 2000 looks like the top of Mt Denali from the Everest peak. So, is money velocity the sheer cliff by whose edge we sit?

The Scream! Out-of-control money printing, dead money velocity and collapsing purchasing power of the dollar.

(Bloomberg) — With U.S. equity indexes rising to fresh records again this week, one of Warren Buffett’s most-famous catchphrases comes to mind: Investors should “be fearful when others are greedy.”

Any Buffett disciple who checks in on the billionaire investor’s favorite market valuation metric these days may get the urge to shriek in terror.

Screenshot-2021-03-30-at-9.04.39-AM-300x152 Buffett Indicator Screaming Sky High Valuations

And then there are home prices at 38% higher than the peak during the 2005 housing bubble.

Screenshot-2021-03-30-at-9.04.50-AM-300x215 Buffett Indicator Screaming Sky High Valuations

Here is what causing me to shriek in terror. Out-of-control money printing, dead money velocity and collapsing purchasing power of the dollar.

Screenshot-2021-03-30-at-9.05.01-AM-300x214 Buffett Indicator Screaming Sky High Valuations

Originally posted on Confounded Interest

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