The Buffett Indicator hit a record high, suggesting that US stocks are at a relatively high valuation level.

According to Mars Finance, on January 11th, Barchart reported that the Buffett Indicator (US stock market capitalization/GDP ratio) is currently around 223%–224%, with some data sources even showing it near 230%. This is a historical high, surpassing the peak of the 2000 dot-com bubble (approximately 150%) and the post-pandemic high in 2021. Historically, the long-term average of this indicator has been around 80%–100% (since 1970), with 100%–120% considered a relatively normal "reasonable valuation" range. The Buffett Indicator is one of Warren Buffett's most valued overall market valuation metrics, which he has called "the single best indicator of market valuation."