The stock market is a complex and ever-changing landscape, with various indicators and metrics to assess its value. Understanding whether the stock market is overvalued or not can be an intricate task. This article will break down some key indicators that suggest the current state of the market, focusing on insights from seasoned experts. The Buffett Indicator Warren Buffett, one of the world's most renowned investors, has a favorite market gauge known as the "Buffett Indicator." It takes the total market capitalization of all actively traded stocks and divides that figure by the gross domestic product (GDP). A reading above 100% suggests that stocks may be overvalued. As of recent measurements, the global Buffett Indicator has surged to nearly 110%, and the US-specific indicator reached 171%. These numbers are flashing warning signals that stocks could be overheated, and a correction or even a crash might be coming. Market Capitalization vs. Long-Run Equilibrium Another ...