According to The Kobeissi Letter, the US stock market capitalization-to-GDP ratio has reached a record 221% (source: The Kobeissi Letter). The ratio has jumped 58 percentage points since the April low and now stands 4.6 times the 2008 Financial Crisis low (source: The Kobeissi Letter). The metric previously peaked at 142% in the 2000 Dot-Com Bubble and has stayed above its ~87% long-term average for 13 years (source: The Kobeissi Letter). Warren Buffett has described market cap-to-GDP as probably the best single measure of where valuations stand, making today’s extreme reading trading-relevant for equity risk management such as de-risking, hedging, and factor tilt adjustments (source: Fortune 2001 interview with Warren Buffett). For crypto, BTC and ETH correlations with US equities increased materially in 2020–2022, so extreme equity valuation signals can inform risk-on/risk-off positioning and hedge ratios in digital assets (source: Fidelity Digital Assets 2022; source: CME Group 2023 research on BTC–S&P 500 correlation).