Recently, I saw some data that was a bit alarming—the Buffett Indicator for the U.S. stock market hit a new all-time high.

According to the data, this ratio has now reached 223%-224%, with some sources even indicating close to 230%.

To understand what this means, we need to look at historical comparisons.
During the dot-com bubble in 2000, it was around 150%, and the peak after the pandemic in 2021 was not even this high.
The long-term average of the Buffett Indicator is roughly 80%-100%, and 100%-120% is considered a relatively normal and reasonable valuation range.
This current figure clearly exceeds all historical reference points.

Warren Buffett himself has always regarded this indicator as the most important market valuation tool, and he even said it is "the single best indicator of market valuation."
Looking at it now, market valuations are indeed at a quite high level.
Many people are discussing how long such a Buffett Indicator level can be sustained.