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Grantham Flags 235% Buffett Indicator — AI-Fueled Market Bubble

6/27/2026

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Story summary

Investor Jeremy Grantham warned the market reached its highest valuation, with the Buffett Indicator at 235% of GDP.
He said AI boom pushed the market-cap-to-GDP ratio above twice the economy’s size, likening it to 2000 dot-com bubble.
Grantham recalled investor Warren Buffett’s warning a 200% ratio means “playing with fire,” noted March 2024 warning U.S. stock prospects were “as poor as any other time,” and observed markets kept rising.

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Story summary

Investor Jeremy Grantham warned the market reached its highest valuation, with the Buffett Indicator at 235% of GDP.
He said AI boom pushed the market-cap-to-GDP ratio above twice the economy’s size, likening it to 2000 dot-com bubble.
Grantham recalled investor Warren Buffett’s warning a 200% ratio means “playing with fire,” noted March 2024 warning U.S. stock prospects were “as poor as any other time,” and observed markets kept rising.