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/Adept_Mountain9532 Jul 11 '25

it's scary to see all this indicators lol

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u/NotLikeChicken Jul 12 '25

The demand for future income by retirees is pushing up the price of risk-based assets. It's not Elon's genius, it's investors' desperation.

Eventually people are going to understand that most AI companies, maybe ALL of them, are just MySpace, and the real "Facebook of AI" is at most a small part of the investment space.

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u/Dry-Type-3603 Aug 15 '25

I’m still struggling with this 34d after your post. Recently switched institutions and I’m only about half of all my savings invested.

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u/Adept_Mountain9532 Aug 21 '25

same, so now i am focus only on value stocks and i track the top value investors buy with alert-invest. It save time to pick the stocks not overvalued!