The famous Buffett Indicator—which compares the total value of all U.S. stocks (Wilshire 5000) to America’s gross national product—has just rocketed to âšĄïž218%, smashing every record from the Dotcom and COVID eras.

For context, it was around 190% at the top of those bubbles. This is uncharted territory for U.S. equities.

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Warren Buffett once called this ratio “probably the $best single measure of where valuations stand.”

Back in 1999–2000, when the indicator approached 200%, he warned investors:

> “If the ratio approaches 200%
 you are playing with fire.” đŸ”„

Today, at 218%, the alarm isn’t just ringing—it’s deafening.

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🚀 Tech Giants Fuel the Surge

Mega-cap tech companies are the rocket fuel behind this move.

Billions are being poured into AI projects, and markets are rewarding these firms with record valuations.

Equity prices are growing far faster than the economy itself—a classic signal of overheating that this indicator was designed to reveal.

S&P 500 price-to-sales: now 3.33 (Dotcom peak was 2.27)

Post-COVID high: 3.21 → already broken

These numbers scream “expensive.” 💰

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🧠 Is the Indicator Outdated?

Some analysts argue the economy has changed.

The U.S. is now more about technology, software, and data networks, less about factories and hard assets.

GDP/GNP may not fully capture the value of intellectual property, so higher valuations might be more reasonable than in 2000.

Still, the data is tough to ignore. Even if the metric isn’t perfect, markets have never been this stretched vs. the economy.

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🏩 Buffett’s Quiet Moves

Buffett himself hasn’t commented on the ratio in years.

But actions speak louder than words:

Berkshire Hathaway cash pile: đŸ’” $344.1B (Q2)

Net seller of equities: 11 straight quarters

He’s stockpiling cash and letting valuations run.

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⚠ Bottom Line

At 218%, the Buffett Indicator is flashing the brightest warning in history.

Whether it’s a sign of a coming correction or simply a new era for valuations, the market is playing with fire đŸ”„â€”and Buffett is sitting on a fortre

$BNB ss of cash while the rest of Wall Street chases AI dreams.