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The "Warren Buffett Index" has soared to 184%, and the valuation of US stocks is already very high
Sina Financial News Warren Buffett’s favorite market indicator suddenly came with a danger warning. According to the latest data, the “Buffett indicator” has soared to 184%, the highest point in nearly two years. Warren Buffett has warned that buying stocks when the indicator is close to 200% is “playing with fire”, and when the indicator soars to record highs, it is a very strong warning signal that a crash is coming. It should be noted that the “Buffett Indicator” is the value obtained by dividing the total market capitalization (Wilshire 5000 Index) of all actively traded US stocks by the US gross domestic product (GDP) for the latest quarter. The indicator compares the overall market capitalization of the U.S. stock market with the size of the U.S. economy to determine the market valuation level.