The US stock market is officially more overvalued than ever. The Buffett Indicator (total market cap vs. GDP) just hit an all-time high of 232.6%, meaning stocks are trading at more than double the size of the actual economy.
Despite the "it'll only go higher" hype, the numbers show we’ve blown past the most famous bubbles in history:
2000 Dot-Com Bubble: 162.6% (Today is 70% higher)
2021 Frenzy: 218.7% (Today is 14% higher)
Current (2026): 232.6%
We are in uncharted territory. The gap between stock prices and economic reality has never been wider.
The Stock Market is in its most overextended state in history, surpassing even the most euphoric periods of the early 2000s and the 2021
byu/Undisputedspoke instocks
Posted by Undisputedspoke
36 Comments
Two weeks ago, we were oversold and crying like Keith Sweat.
TLDR: buy the dip. Works every time
So short it
That’s just one indicator.
Rip to your puts
2021 wasn’t even that bad of a dip to hold and buy thru
Here for people calling you a doomer.
Doomer
Believe it or not, calls? More seriously though, what are you going to do. Even buffett is still largely invested. You just gotta ride it all the way up and try to avoid riding it all the way down.
The stock market is a tool to extract wealth from workers and the gap between the working class and the rich is only growing greater with more efficiency every day, I bet it’ll keep going up. idk I’m holding
Buy puts then. I dare you.
Don’t worry I’m buying high so I can sell low later
Yep …. When you miss the dip …. The market is all of a sudden overextended , euphoric and expensive . Look under the hood , you will find some bargains
Yep, but as most of the comments suggest no worries. Just party like it’s 1929…
Nuh uh
So… calls?
Just rebalance, or accumulate cash & place in short term fixed income.
There’s enough cocaine to fuel the pump until eternity
Great analysis, thanks OP
Hope yall been buying
I use the Reddit Indicator.
When the post is bullish and the comments are OMG END OF THE WORLD that’s my buy signal.
When the post is bearish and the comments are LOL DOOMER MARKET GO BRRRR that’s my sell signal.
yeah well that’s just like your opinion man
Fries. In. BAG!
Who decided that a companies equity markets could not be a multiple of the economy?
Its casino here. There is no economy for stocks. Look at tesla.
The market can stay irrational longer than you can stay solvent type post
Hidden Inflation.
This time it will be different –ChatGPT
Globalization has resulted in an increasing amount of revenues from international sources. Additionally, not all companies listed on US exchanges are headquartered/ based in the US
Buffet indicator compares market cap to USA GDP. What proportion of multinational corporate revenue came from USA vs international, today vs 20 years ago? It’s higher now and that’s a factor
The united states is overextended period. The copium these imaginary numbers provide is essential to our sanity.
The rigging to make sure it goes up is just more apparent now than ever before.
How much of that is dollar devaluation?
But companies are making profit. In 2000 they were losing money. Different scenarios.
https://en.macromicro.me/charts/406/us-buffet-index-gspc
Buffett index has hit ATHs so many fucking times. Go be a crybaby and don’t buy if you’re scared of ATHs.
Then again this post is clearly ChatGPT so I guess enjoy the karma
Buffet indicator might be a dinosaur indicator. Landscape is completely different. Buy and hold, always winning