Should You Really Buy Stocks With the S&P 500 Near Its Record High? Warren Buffett Has Excellent Advice for Investors.

From Yahoo Finance: 2025-06-21 04:06:00

The S&P 500 has nearly recovered to its record high despite uncertainty over tariffs and high valuations. Warren Buffett advises investors to be cautious when others are greedy and to buy quality stocks at reasonable prices. The S&P 500 is currently within 3% of its all-time high, showing signs of greed in the market.

S&P 500 companies outperformed expectations in Q1, but estimates for future quarters have been revised lower. Inflation has decreased since January, but economists predict tariffs will increase prices and slow economic growth. Investors should be wary of the current market conditions and consider Warren Buffett’s advice on buying opportunities.

The stock market is in a precarious position due to tariffs and high valuations, with the S&P 500 trading at 21.6 times forward earnings, above the five-year average. Despite uncertainty, the index is close to its record high, indicating greed in the market. Investors should exercise caution and focus on valuations and quality stocks.



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