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How is the heat matrix diagram calculated? It seems to be wrong. Public Debt has a 3.7/10, while it looks like its around 8.5 in the heat diagram. Looking at t
by benmarten 9y ago
How is the heat matrix diagram calculated? It seems to be wrong. Public Debt has a 3.7/10, while it looks like its around 8.5 in the heat diagram.
Looking at the individual ratings:
- Household Debt: 5.5 / 10
- Market Overvaluation: 9.1/10
- Market Volatility: 0.3/10
- Public Debt: 3.7/10
--> SUM = 18.6/40 or 46.5%
Also I noted: Drawing a linear trend line through the "Market Overvaluation" diagram, does make it look a lot better though. One could argue that people get used to certain levels, hence a growing trend over time.
Taking only these factors into account, it does not look like the market is gonna crash soon. In my opinion it's likely going to be caused by another factor not listed here ;)
- wuliwong 9y agoI'm also confused by the public debt number. It is far higher now than in 2008.
- kerkufle 9y agoThanks Obama!
- truffle_pig 9y agoThanks for bringing this up - turns out that was a bug. I've fixed it now so they're the same.