Is the Stock Market Going to Crash? Warren Buffett's Warning Is Hard to Ignore.

Warren Buffett's favored valuation metric, which divides total U.S. stock market capitalization by annual GDP, is signaling overvaluation at 228%—well above the 200% threshold Buffett has warned is "playing with fire." Berkshire Hathaway, which holds $377 billion in cash and equivalents, reflects Buffett's cautious stance as the S&P 500, Nasdaq, and Dow have generated substantial gains in recent years, fueled significantly by artificial intelligence stocks. Buffett has compared current market conditions to "a church with a casino attached," suggesting that long-term investing and short-term speculation have become dangerously blended.