US stock markets are currently passing through the same peaks they faced 11 years ago, right before the massive sell-off that triggered the 2008 financial crisis, according to Phil Town, who sold his stocks before the crash.
“I think we are right on the brink. The logic is pretty straightforward from a fundamental point of view, we are at a relationship between the Wilshire GDP ratio which is almost unprecedented historically, where we have a relationship that is historically the Wilshire's 70 to a 100 percent value of GDP,” the investor told The Street.
The Wilshire 5000 is an index that consists of all the stocks that are actively traded in the United States. Following the dot-com bubble of the late 1990s, Warren Buffett introduced the ratio of the Wilshire 5000 full-cap index to the US GDP as a measure to evaluate the American economy's overall valuation...