Warren Buffett’s favorite stock market indicator isn’t alone in hinting stocks are long overdue for a breather

The stock market is entering the danger zone, according to one often overlooked measure of equities valuation. 

At its current level of 38 times, the Shiller P/E Ratio is nearing the peak (44 times) seen at the height just before the dot-com bust in 2000, write strategists at SunDial Capital Research. Created by noted Yale professor Robert Shiller, the ratio is seen as better than the traditional P/E ratio as it adjusts for inflation.

Historically, a Shiller PE ratio sustained over 25 times…

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