Buffett Indicator Hits All-Time High, Signaling U.S. Stock Market Is Overvalued

BlockBeats News, January 11th, according to Barchart, the current Buffett Indicator (total US stock market cap/GDP ratio) is about 223%–224%, with some data sources even showing it reaching around 230%. This is the highest level in history, surpassing the peaks of the 2000 dot-com bubble (around 150%) and the post-pandemic high of 2021. Historically, the long-term average of this indicator is around 80%–100% (since 1970), with 100%–120% considered a relatively normal "fair value" range.

The Buffett Indicator is one of Warren Buffett's most valued overall market valuation indicators, which he has referred to as the "single best measure of where valuations stand at any given moment."