Vanguard’s 2026 outlook is here, and it's raising alarm bells for retirees with US stocks. How to protect yourself

Another consideration is the “Buffett Indicator,” which tracks the ratio of market capitalization to GDP. Essentially, investing legend Warren Buffett notes that if the stock market is valued at a significantly higher rate than a country’s GDP, it could indicate that stock valuation is speculative, not actual. Currently, the indicator sits at about 224%, meaning the market could be significantly over-valued (4).In other words, Vanguard’s analysts believe that past performance may not be indicative of future ...