
The Buffett Indicator – a market valuation measure – is signaling potential danger as it surpasses levels witnessed during the Dot-Com Bubble and the Great Financial Crisis.
What Happened: This indicator, attributed to Berkshire Hathaway Inc (NYSE:BRK) (NYSE:BRK) CEO Warren Buffett, compares the market capitalization of stocks to the Gross Domestic Product (GDP) to determine if equities are overvalued or undervalued.