On Monday, Berkshire Hathaway Inc. (BRK.A, Financial)(BRK.B, Financial) CEO Warren Buffett (Trades, Portfolio)’s favorite market indicator stood at 154.7%, approximately 1.6% higher than the 153.1% reading on Dec. 30, 2019, and 6.2% higher than the previous high of 148.5% set in March 2000.
Dow and S&P set new records as U.S. removes China as a currency manipulator
The Dow Jones Industrial Average closed at 28,905.90, up 82.13 points from Friday’s close of 28,823.77 on news that the U.S. Treasury has removed China as a currency manipulator.
CNBC columnist Thomas Franck said that Treasury Secretary Steven Mnuchin reiterated in a Sunday Fox News interview that Phase 1 of the U.S.–China trade deal is an important step and that Beijing has agreed to purchase over $200 billion in U.S. goods over the next two years.
Markets begin 2020 significantly overvalued
As the stock market continues setting new highs, the market becomes more overvalued. Buffett’s favorite market indicator, which captures the ratio of the Wilshire 5000 full-cap index to the U.S. gross domestic product, eclipsed 154% on Monday.
Value screens continue identifying opportunities
Despite the significantly overvalued stock market, GuruFocus’ value screens still identify good investing opportunities domestically and internationally. Table 1 reports the value screener record for each of our major value screens.
| Screener | USA | Asia | Europe | Canada | UK/Ireland | Oceania | Latin America | Africa | India |
| Graham Net-Net | 117 | 511 | 256 | 37 | 40 | 11 | 7 | 12 | 155 |
| Undervalued Predictable | 38 | 89 | 217 | 8 | 49 | 6 | 45 | 2 | 11 |
| Buffett-Munger | 21 | 101 | 120 | 3 | 29 | 1 | 24 | 4 | 41 |
| Historical Low PS | 48 | 111 | 110 | 1 | 20 | 1 | 23 | 8 | 35 |
| Historical Low PB | 51 | 138 | 150 | 3 | 33 | 1 | 27 | 8 | 58 |
| Peter Lynch Screen | 21 | 49 | 43 | 0 | 10 | 0 | 6 | 3 | 21 |
| 52-week Lows | 1260 | 3974 | 2290 | 135 | 995 | 66 | 600 | 129 | 700 |
| 52-week Highs | 3569 | 3473 | 7825 | 309 | 2267 | 244 | 1111 | 150 | 667 |
Table 1
Disclosure: No positions.
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