Stock Market Hits New Highs Amid Cautious Optimism

The stock market has reached unprecedented valuation levels, with the Buffett Indicator surpassing 200% for the first time, suggesting stocks are historically expensive compared to GDP. Historically, such high valuations have preceded significant market downturns, as seen during the dot-com bubble and the financial crisis. Despite these warning signs, historical data shows that economic expansions and bull markets tend to last longer than recessions and bear markets, highlighting the importance of patience for long-term investors.