Buffett Indicator Hits Record 231.7% as Shiller P/E Eases to 42.18 Near Dot-Com Peak

U.S. stock valuations stay critically stretched with the S&P 500 Shiller P/E dipping slightly to 42.18 in May 2026 from 42.32 on May 14, still less than 5% below the 1999-2000 dot-com peak of 44.19. The Buffett indicator reached an all-time high of 231.69% on May 7—over double its 88% historical average—amid Berkshire Hathaway's $187 billion net stock sales over 13 quarters and Warren Buffett's retirement. AI-driven YTD gains of 14% for the S&P 500 and 24% for the Nasdaq heighten correction risks, echoing the post-dot-com 50% plunge, with Bitcoin below $126,000 eyed as a hedge.