Stock Market Hits Unprecedented High: What History Predicts Next

TL;DR Summary
The stock market has reached unprecedented valuation levels, with the Buffett Indicator surpassing 200% for the first time, suggesting stocks are historically overpriced. This metric, which compares the market cap of U.S. stocks to GDP, has a strong track record of predicting market downturns when valuations are high. Despite these warning signs, historical data shows that economic recessions are typically short-lived, and bull markets tend to last significantly longer than bear markets, highlighting the importance of patience for investors.
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