The Buffett Indicator Signals Elevated Risk As Ratio Hits 222 Percent - Apple (NASDAQ:AAPL), Amazon.com (NASDAQ:AMZN)
Benzinga·2026-01-20 17:27

Investors are closely watching a classic market valuation metric: the Buffett Indicator. This ratio, which compares the total market capitalization of U.S. equities to the country's gross domestic product, recently climbed to 222 percent. Historically, readings above 200 percent have often preceded market corrections, prompting analysts and investors to consider the potential risks for stocks in the near term.Understanding the Buffett IndicatorThe Buffett Indicator is named after billionaire investor Warren ...