S&P 500 is at a historically high level

The S&P 500 index is at historically high levels, raising questions about potential market decline. According to Warren Buffett's assessment, stock prices today are largely based on future expectations rather than companies' actual results.

Recently, Buffett's company Berkshire Hathaway has slowed its aggressive stock purchases. The company has reduced its stakes in Apple and other major businesses and accumulated a record cash reserve. This suggests that Buffett expects more favorable prices in the market.

The CAPE ratio also points to high stock valuations. Currently, it stands at approximately 41, while the historical average is 17.8. A similar indicator was last recorded in the late 1990s, which was followed by a prolonged market decline.

Under such conditions, it is important for investors to refrain from emotional decisions, invest funds gradually, and select financially strong companies.

Source: Yahoo Finance