Other ways that show how expensive the market is: https://www.zerohedge.com/news/2019-06-06/how-many-hours-work-does-it-take-buy-sp
What a great article. When it says it takes 15 hours to buy the S&P is that literally for just one share?
Yeah, it's just one of several ways to measure valuation. But it's most important within the context of what was high and low before. Also, GDP compared to the Wilshire 5000 (considered a total stock market index, with thousands of stocks in it). We're at the area before where a bear market started. It doesn't mean one "has to" start now but it does mean there's high risks because stock valuations relative to economic growth are at the high end of what they've historically done. The Wilshire to GDP metric is one that Buffett uses.