The ratio of market capitalization to GDP is also known as the Buffet Indicator. Currently, the Wilshire 5000 to GDP ratio sits around 195% according to Barchart, higher than the ratio preceding the dot-com bubble crash as well as the Great Financial Crisis in 2007-2008. Benzinga
What do you think is currently the #1 most overvalued stock?
Warren Buffett's Berkshire Hathaway isn't known for "chasing trends", but its portfolio is significantly benefiting from AI. Despite Buffett's traditional approach, 45% of Berkshire's $398.7 billion portfolio is in stocks set to gain tremendously from AI.
The Warren Buffett Indicator, a key measure of stock market valuation, has reached an unprecedented level of 195%, surpassing previous peaks seen during the Dot Com bubble, the Global Financial Crisis, and the 2022 Bear Market. This ratio, which compares market capitalization to GDP, suggests that stocks are extremely overvalued. The Wilshire 5000 to GDP ratio is currently around 195%. Additionally, Warren Buffett's Berkshire Hathaway now owns 3% of the entire U.S. Treasury Bill market, valued at approximately $158 billion.