As the Stock Market Flashes a Warning Seen Only 2 Times in 155 Years, Warren Buffett has a Big Warning for Investors
Is it time to get fearful?
Overview
Over the last three years, the S&P 500 has gone into overdrive -- gaining roughly 26%, 25%, and 18% consecutively over the last three years. These numbers are well above the index's 100-year average return of just 10%, and the outperformance can be credited to a new technology called generative artificial intelligence, which promises to transform the global economy.
That said, history tells us that periods of exceptional stock market growth are often followed by a mean reversion or underperformance as the market corrects its irrational exuberance. Investing legend Warren Buffett knows this well, and navigating these periods has been one of the keys to his exceptional long-term track record. Let's dig into his strategy to see what lessons investors can apply to their own portfolios.
Warren Buffett. Image source: The Motley Fool.
Details
Source
Originally published at www.fool.com.