Warren Buffett Sends a $150 Billion Warning to Stock Investors as the S&P 500 Races Past Record Highs

The stock market is headed into the final month of a banner year. The benchmark S&P 500 (SNPINDEX: ^GSPC) has advanced 27% in 2024, putting the index on pace for one of its best performances of the 21st century. Indeed, the S&P 500 has raced past more than four dozen record highs year to date amid excitement about artificial intelligence and interest rate cuts, and it closed at a fresh high on Dec. 2.Investors must now answer a difficult question: Is it smart to buy stocks with the S&P 500 at its record high? On one hand, the market has historically performed well from highs. From January 1970 to December 2023, the S&P 500 returned an average 9.4% during the 12 months following a record close, but it returned just 9% annually during the entire period, according to JPMorgan Chase strategist Madison Faller.On the other hand, the tremendous run-up in the S&P 500 has left many stocks trading at historically rich valuations, and Warren Buffett recently sent investors a $150 billion warning. Here are the important details.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool