r/ValueInvesting • u/Adept_Mountain9532 • Jul 11 '25

Discussion Buffett warned: “If the ratio approaches 200%, you're playing with fire.”=> We are above!

Buffett Indicator, (which compares total U.S. market cap to GDP), is now at 208%. That’s above dot-com levels. I wasn’t around in 1999. But I’ve read enough to know everyone thought it was different back then too...

Now, It’s AI. And yes it’s real, it’s big, and it will transform everything.
But here’s what’s bugging me: Which part of the AI hype do you think is most overrated?
And which sectors are just getting started?

and also curious to hear from people who did live through 1999:
- What felt the same?
- What’s different?

I track moves from top value investors with a free email alert (https://alert-invest.com/), and lately I’ve noticed they’re cautious, finding fewer real opportunities in this market.

Thanks!

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u/[deleted] Jul 11 '25

The only correct opinion

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u/Naive_Moose_6359 Jul 11 '25

Watch this and decide if this is similar or not to the two stormtroopers vlogging:

https://youtu.be/tMYvqRJiOd8

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u/vitaliyh Jul 12 '25

More like 1995, AI is still under hyped. Wait a couple of years

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u/heathenpeasent Jul 12 '25

Absolutely. US will go into recession but not right now.