He is not making any macro statement about the economy. If anything it's a statement about large cap stock valuations. Warren Buffett likes to pick value-priced

He is not making any macro statement about the economy. If anything it's a statement about large cap stock valuations. Warren Buffett likes to pick value-priced stocks, and there just aren't that many of them around anymore after 10 years of easy money. Especially if you look at large companies, most of which are priced to perfection. There may certainly still be bargains in the smaller company space, but those don't move the needle for a giant like Berkshire Hathaway. Expensive stocks may be one sign of an upcoming crash, but they are by no means a sufficient condition. Stocks can stay expensive for many years, and the conditions that led to them being expensive (easy money) actually look like they'll be around for quite a while yet. There are other possible indicators like the inverted yield curve, but again, one can never say for sure. Oil prices for example are depressed, and that is not what is typically seen before a recession: https://www.bloomberg.com/opinion/articles/2019-08-27/oil-prices-aren-t-predicting-a-recession https://www.bloomberg.com/opinion/articles/2019-08-27/oil-pr...