The Buffett Indicator has hit an All Time High

The Buffett Indicator, which Buffett once said is the best single indicator of where valuations stand at any given time, just hit an All Time High.

As of 19APR, the ratio hit ~230% - the highest month-end reading on record.

Remember what Buffett said way back in 2001, "If the percentage relationship falls to the 70% or 80% area, buying stocks is likely to work very well for you... If the ratio approaches 200% — as it did in 1999 and a part of 2000 — you are playing with fire."

The Buffett Indicator just hit ~230%. An all-time high. Higher than the dot-com bubble. Higher than 2021. Thirty-two points past the line Buffett himself said was playing with fire.

So what am I doing about it? Honestly not much changes.

There are still good investments out there. It's just a matter of finding them.

But when valuations are this stretched, the fat pitches are rarer. You have to be pickier. Wait for the pitch you can actually swing at... instead of swinging at everything.