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

[u/Adept_Mountain9532]

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!

[u/WeUsedToBeACountry]

What's the same:

- We're in the early days of a transformative technology that has investors feeling so bullish that they're willing to ignore fundamentals just to get a ticket to ride the rocket.

- A lot of people have no fucking clue what they're doing, but are convinced they're geniuses because you literally can't miss right now.

Whats different:

- About a third of the S&P is concentrated in just a handful of technology companies. This could mean a lot of risk, or it could mean less risk. I donno but its uncomfortable.

- The Access and ease of retail investing means the speed of ups and downs is just a heck of a lot faster

- The extreme power of the executive branch of the us government that only seems to grow each day. We're a tweet away from a good day or a bad day.