As the Stock Market Flashes a Warning Seen Only 2 Times in 155 Years, Warren Buffett has a Big Warning for Investors

The S&P 500 has surged 26%, 25%, and 18% over the last three years, driven largely by generative AI hype. However, the market's CAPE ratio now stands at 41—a level seen only twice in 155 years (before the dot-com bubble in 1999 and the Great Depression in 1929). Warren Buffett warns that the market is driven by 'gambling' rather than fundamentals, and recommends focusing on valuations and business sustainability rather than chasing speculative trends.