This Favorite Warren Buffett Metric Tells Us a Stock Market Crash Could Be Coming -- The Motley Fool

collected by :Molly Tony

However, Buffett himself has mentioned one specific metric as the best indicator of stock valuations, and it has appropriately been nicknamed the "Buffett Indicator" in the investing community. Here's what the Buffett Indicator is, and why it may be signaling that the stock market is a bit overheated. To be clear, no stock market metrics are 100% reliable at predicting corrections, crashes, rallies, or stagnant stock markets. In a nutshell, the Buffett indicator can tell you the valuation of the stock market in a historical context right now. For example, if you look at the stock market during a high-interest period and a low-interest period, examining stock valuations isn't exactly an apples-to-apples comparison.

3 Ways to Lose All Your Money in the Stock Market -- The Motley Fool

If there's one word that tends to be associated with the stock market, it's volatility. One thing you must keep in mind about the stock market is that rapid upticks and downturns are par for the course. Just as you might see your portfolio value climb $2,000 overnight, so too might it lose double that amount in a mere 24-hour period. Such has historically been the case for the stock market, and there's no reason to assume that you'll be the glaring exception. The stock market can be a scary place to put your money, but it doesn't have to be.

What Happened in the Stock Market Today -- The Motley Fool

as informed in Meanwhile, consumer goods stocks helped prop up the market, with the Consumer Staples Select Sector SPDR ETF (NYSEMKT: XLP) rising 0.5%. As for individual stocks, earnings news sent Facebook (NASDAQ: FB) plummeting and Hershey Company (NYSE: HSY) soaring. Quarterly revenue increased 42% year over year to $13.23 billion, a steep slowdown from the 49% growth it posted last quarter. By comparison, most investors were looking for slightly lower earnings of $1.72 per share on higher revenue of 13.36 billion. Additionally, Hershey's board approved a new $500 million stock repurchase authorization and increased the company's dividend by 10%.

3 Things to Watch in the Stock Market This Week -- The Motley Fool

iRobot's market shareGiven the recent rally in the stock, investors seem to be optimistic about iRobot's Tuesday earnings release. The robotic-vacuum specialist has been growing at a strong pace lately, with sales up 29% in the most recent quarter. Management has warned that earnings growth could suffer as the company defends its positioning while the robotic-cleaning industry enters the mainstream. We'll find out this week whether negative press surrounding the company's data-sharing policies had any impact on those user growth or engagement trends. Mickey D's recent results weren't all good news, though.