The Buffett indicator, which compares the total value of the U.S. stock market to U.S. GDP, has climbed above 230%, surpassing its long-term average of 164% and reaching an all-time high. The ratio, popularized by Warren Buffett in a 2001 essay, previously approached 200% during the dot-com bubble, a level he described as 'playing with fire.' The recent reading suggests stocks may be significantly overvalued, though the indicator does not predict the timing of any pullback. Investors are considering strategies such as selling, holding, or rebalancing their portfolios in response to the signal.