Billionaire Warren Buffett’s go-to market signal, the same one that flagged the dot-com bubble, the 1970s lost decade and the 2022 tech wipeout has hit its most extreme level ever in recorded history - and it’s flashing bright red for the U.

US stock valuations hit record highs as the Buffett Indicator soars to 212% of GDP, surpassing the Dot-Com and 2008 peaks.

Key Points Warren Buffett has said this ratio is the single best measure of stock market valuations.Valuations have climbed to new highs, but there are several reasons stocks are more expensive today.