- U.S. stocks have soared, with the Wilshire 5000 market cap hitting a new all-time high of 212% of GDP, one of Warren Buffett’s key warning levels. Despite global indexes near record highs, we’re seeing mild selloffs this morning. In addition, Goldman Sachs reported a high level of speculative trading activity.
The U.S. stock market has just blown through Warren Buffett’s favorite economic indicator, stock market cap to GDP, setting a new all-time high. The valuation of the Wilshire 5000—which hit a record high on July 23—is now somewhere north of 212% of U.S. GDP, the “Buffett Indicator” shows.
