The Buffett Indicator is at historic levels, which may not be good news for investors.

Despite some rough patches earlier this year, the stock market has been thriving throughout most of 2025. The S&P 500 ( ^GSPC -0.38% ) is up by more than 14% as of this writing, surging by a whopping 35% since its April lows.

But unbridled growth isn't always a good thing, and some investors are worried that we're in an overvaluation bubble that's about to pop. While nobody knows for certain what's coming for the stock market, the famed Buffett Indicator suggests that investors could be "playing with fire" right now.

Here's what you need to know.

The Buffett Indicator is in risky territory

The Buffett Indicator is a ratio comparing the total U.S. stock market value to GDP , popularized by

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