US stock valuations hit a record high: Buffett Indicator soared to 223%-224%, 1.5 times higher than the internet bubble

2026-01-11 03:40:13

Abstract generation in progress

【BlockBeats】The ratio of the total market capitalization of the US stock market to GDP—the Buffett Indicator—has recently surged to 223%-224%, with some data sources approaching 230%. What does this mean? It’s a record high.

To put it into perspective: at the peak of the 2000 dot-com bubble, it was only 150%. The high point after the 2021 pandemic rebound was just around here, and now it’s more than 1.5 times higher. In the long term (since 1970), the reasonable median of this indicator is about 80%-100%, with 100%-120% considered a relatively healthy valuation range.

Warren Buffett himself places particular importance on this indicator, even calling it “the single best measure of market valuation.” What this level signifies should be clear to investors. Whether in traditional stocks or the crypto market, warning signs of valuation bubbles are flashing.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

14 Likes

Reward
14
7
Repost
Share

Comment

0/400

WhaleWatcher

· 14h ago

223 is almost逼 to 230? Truly fierce, 1.5 times more intense than the internet bubble... If it crashes this time, it will be very painful. --- Old Mr. Ba says this is the best indicator, and now these numbers... we need to be prepared. --- Wait, is it more excessive than the 2000 bubble? Why hasn't it exploded yet... --- 80-100 is considered normal? Now it's directly doubled or more, who dares to buy the dip? --- Traditional stock markets and the crypto circle are both experiencing double bubbles at the same time, this script is a bit extreme. --- 230 is almost reached, feels like this time is different. --- The reasonable central value is only 100%, and now it's 223... My goodness, how severe will the correction be?

View OriginalReply0

GateUser-1a2ed0b9

· 16h ago

223%? That's really outrageous... 50% higher than the internet bubble, the valuation ceiling is about to break, right?

View OriginalReply0

CryptoNomics

· 16h ago

honestly, if you're still not seeing the statistical significance here, i don't know what to tell you. the deviation from mean is literally *screaming* at us, and yet retail keeps buying the dip like it's some sort of stochastic process they can predict lmao

Reply0

SpeakWithHatOn

· 16h ago

Wow, 223%? That's more than double the Internet bubble, I really can't take it anymore.

View OriginalReply0

GateUser-2fce706c

· 16h ago

I've already warned that this wave requires caution. It's too late now that you're only realizing it. Buffett indicator has skyrocketed to this level, and some are still chasing the highs? Opportunities don't come often, everyone. It's time to wake up.

View OriginalReply0

ser_aped.eth

· 16h ago

Whoa, 223%? That's almost flying out of the Earth, feels like it's going to crash down at any moment.

View OriginalReply0

NFTragedy

· 16h ago

223%？ Damn, this number is terrifying, more outrageous than the internet bubble... ---- Wait, does this mean I should buy the dip or run away? I'm a bit confused. ---- Even Buffett is getting anxious, and we're still going all-in here? ---- 1.5 times the bubble... feels like it's about to burst. ---- If it crashes, everyone will have to go down with it. ---- Hey, wait a minute, does hitting a new all-time high necessarily mean a fall? Maybe this is just the new normal. ---- Really? Then can my coin still survive 😅? ---- 233% scaring people like that... that's a bit too much.

View OriginalReply0