download the appSign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read previewWarren Buffett's favorite market gauge has surged to a two-year high of 184%, signaling stocks are overvalued and could suffer a devastating crash. Investors use it to compare the overall value of the stock market to the size of the national economy. It also relies on GDP, which excludes overseas income, whereas US stocks price in the value of companies' domestic and international operations. AdvertisementYet the metric's return to the lofty levels that preceded past market disasters is a clear red flag for some experts.

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Persons: —, Warren, Buffett, yardstick, Buffett's yardstick, John Hussman, Paul Dietrich, Riley Wealth Organizations: Service, Business, Wilshire Indexes, Wilshire, Nvidia, Microsoft, Federal, Nasdaq, Hussman Investment Trust Locations: Wilshire, Berkshire