Overview

• The Buffett Indicator, measuring U.S. market capitalization relative to GDP, has fallen to 180%, its lowest since September 2024.
• This decline follows a tariff-driven selloff in April and suggests equities may now be attractively priced for investors.
• Berkshire Hathaway, holding a record $334 billion in cash at the end of 2024, is well-positioned to capitalize on lower valuations.
• Critics caution that the indicator may not account for factors like elevated interest rates and is unreliable for precise market timing.
• Investors are gathering in Omaha this weekend for Berkshire Hathaway's annual meeting, anticipating potential updates from Warren Buffett on cash deployment and market strategy.