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Warren Buffett's favorite market gauge hits 171%, signaling stocks are overheated and a crash may be coming
Ariziona Dept. of Revenue
The Buffett Indicator surged to 171% as of Friday's close. Buffett suggested in a Fortune article in 2001 that stocks would be fairly valued at a 100% reading, and buying them at the 70% or 80% level would probably work out nicely. However, he warned it would be "playing with fire" to purchase them around the 200% mark.