The Buffett Indicator reaches a record high, signaling that US stocks are highly valued.

BlockBeats News, January 11, according to Barchart, the current Buffett Indicator (the ratio of the total market capitalization of the US stock market to GDP) is about 223%–224%, with some data sources even showing it approaching 230%. This is the highest level in history, surpassing the peak of the internet bubble in 2000 (about 150%) and the post-pandemic high in 2021. Historically, the long-term average of this indicator has been around 80%–100% (since 1970), and a range of 100%–120% is considered a relatively normal "reasonable valuation" interval.

The Buffett Indicator is one of Warren Buffett's most valued overall market valuation metrics. He once called it "the single best measure of where valuations stand at any given moment."