Buffett Indicator Hits 226% Signaling Extreme S&P 500 Overvaluation

The Buffett Indicator has surged to 226%—well above its 75-90% historical average and the 200% danger threshold—flashing extreme overvaluation for the S&P 500 as of May 15. This follows Warren Buffett's stark Berkshire meeting warnings of a 'gambling mood' after a six-week rally pushed the index up 17% since late March and 31% year-over-year, culminating in a 0.16% dip to 7,400.96 on May 13. Amid Shiller CAPE near 40 (second-highest ever, akin to 1929 and dot-com peaks) and Berkshire's $397-400 billion cash pile signaling scarce bargains, investors face heightened correction risks despite low VIX complacency.