By most popular valuation metrics, the stock market is overvalued. According to “The Buffett Indicator,” which divides the total US stock market value ($65.47T) by the gross domestic product ($30.15T), the US stock market’s valuation in June 2025 was 217%, or roughly 68.63% above the historical average.
In this article, we’ll explore what “overvalued” means, examine key valuation metrics, and share smart strategies for investing in today’s richly priced market.
This post originally appeared at Barbara Friedberg Personal Finance.