"One of Berkshire Hathaway chairman Warren Buffett’s favorite market metrics is flashing a warning sign.
The Buffett Indicator, which calculates the ratio of market cap of all U.S. publicly traded stocks to the country’s gross domestic product, is at the highest level in several decades, according to research from Kailash Capital Research. As of November 2024, the figure reached 230%, the highest on record, according to Kailash’s data. That type of market dynamic hasn’t been seen since March 2000 around the time the dot-com bubble burst. Back then, the market-to-GDP ratio had reached a record level of 175%."
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The stock market gauge named after Warren Buffett just hit an all-time high, sending a warning worse than before the dot-com bubble burst