Warren Buffett Thinks Investors Are "Gambling" Right Now. Here's What Happened the Last Time He Uttered Those Words.

Warren Buffett has warned that investors are currently "gambling" in the stock market, citing surging options trading, leveraged ETFs, and extreme valuations. The Buffett Indicator (stock market cap to GDP ratio) has reached 237%, its highest ever. The last time Buffett used similar language in April 2022, the S&P 500 declined 19% by year-end. However, current valuations are even higher now, and Buffett is hoarding cash rather than deploying it, suggesting greater caution than in 2022.