Warren Buffett's Favorite Stock Market Indicator Is Sounding the Alarm. History Suggests Investors Are "Playing With Fire."
Investors may want to be careful.
Overview
The stock market made headlines recently for closing out its best quarter in years between early April and late June.
Since then, however, stocks have stumbled. The S&P 500 (SNPINDEX: ^GSPC) is down nearly 1% so far this month, as of this writing, while the tech-heavy Nasdaq Composite (NASDAQINDEX: ^IXIC) has dipped by close to 3.5%, its third straight week of declines.
Details
Between surging oil prices threatening to drive up inflation and tech companies grappling with concerns around AI spending, the market has a lot on its plate. One stock market metric Warren Buffett has endorsed could be sending a warning sign to investors, and history suggests investors may want to exercise caution.
Source
Originally published at www.fool.com.