The US stock market has achieved a new record according to the Warren Buffett Indicator, raising concerns among investors.
Warren Buffett Indicator Hits Record
According to the Warren Buffett Indicator, the current valuation of the US stock market has surpassed even the peaks seen during the Dot-Com Bubble and the 2008 Financial Crisis. This indicator compares the total market capitalization of US stocks to the country's Gross Domestic Product, which this week surged to 212%, its highest level in history.
Berkshire Hathaway Exits Equities
Warren Buffett's firm, Berkshire Hathaway, has been reducing its equity investments in recent years. In the first quarter of 2025, the company fully exited its position in Citigroup, offloading the remaining shares worth approximately $1 billion. Additionally, Berkshire sold off significant portions of other financial stocks, including Bank of America valued at around $2.19 billion.
Market Indices Continue to Rise
Market indices also continue to increase. The S&P 500 climbed 0.9% from Monday's opening value of 6,328, closing at 6,388. The Nasdaq Composite also gained 0.4%, marking its third record closing this week. Analysts note that 82% of S&P 500 companies that have reported earnings so far have exceeded Wall Street expectations.
The current situation in the US stock market demands careful examination, considering the record value of the Warren Buffett Indicator and changes in the portfolios of major investors such as Berkshire Hathaway.
