This week the S&P 500 made news by notching a new intraday all-time high and recovering 100% of the losses caused by the coronavirus pandemic in mid-March.
Despite this, there are signs U.S. stock markets could be overvalued. The Buffett indicator, an analysis tool which divides the Wilshire 5000 Index by the U.S. GDP, currently shows 1.7. This figure is quite near to the dot-com era top at 1.71 which was followed by a strong market correction.