The stock market just blew through Warren Buffett's favorite danger signal
Briefly

The stock market just blew through Warren Buffett's favorite danger signal
"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."
"Goldman Sachs launched a new 'Speculative Trading Indicator' that measures froth by gauging trade volumes in 'unprofitable stocks, penny stocks, and stocks with elevated EV/sales multiples.'"
"The indicator now sits at its highest level on record outside of 1998-2001 and 2020-2021, although it remains well below the highs reached in those episodes."
"While most indexes in Asia and Europe remain near their all-time highs, there is broad-based but mild selling in all of them."
U.S. stocks reached a new all-time high with the Wilshire 5000 market cap exceeding 212% of GDP. This level is a key warning indicator for potential market downturns. Global stock indexes remain near record highs, though mild sell-offs are occurring. Goldman Sachs reported an increase in speculative trading activity, particularly in unprofitable stocks and those with elevated earnings valuations. This speculative trading indicator is at a record high, reflecting concerns about market sustainability amid rising valuations.
Read at Fortune
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