11/04/2026
The market is expensive. That’s at least according to the Buffett Indicator. This measure compares the total value of U.S. stocks to the size of the economy. Warren Buffett once called it “probably the best single measure of where valuations stand.” He also warned that when it moves above 200%, markets are “playing with fire.” Today, it sits at a record high figure at 215%. At the same time, economic growth is slowing, with GDP growth in Q4 revised down to 0.7%. That leaves a narrow path forward. Either growth accelerates, or valuations must come down. Still, few seem worried.