The 'Buffett indicator' shows something is majorly wrong with the Indian stock market, and we may be on the verge of a major crash. The market cap-to-GDP ratio, more famously called the 'Buffett indicator' as the Oracle of Omaha , Warren Buffett , considers it his 'single best measure' for long-term valuation of stocks, suggests a huge mismatch between the rate of growth in the economy and that of the stock market. The crucial measure, calculated by dividing the market capitalisation of a country's stock market with the GDP of the economy, is suddenly at a very high level, suggesting either a too high market cap or a too low GDP figure. India's latest GDP data has kicked off a row, with many experts questioning the accuracy of the measure, which doesn't quite add up at certain levels. That could be one factor that has sent the 'Buffett indicator' haywire, making it impossible to base your valuation judgment on it. In an interview
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