The S&P 500 (SNPINDEX: ^GSPC) has advanced 18% year to date, notching more than three dozen record highs in the process. Factors driving that momentum include enthusiasm about artificial intelligence and anticipated interest rate cuts. Additionally, S&P 500 companies are collectively expected to report an acceleration in earnings growth this year.

However, investors are bound to wonder how long the good times will last. Indeed, many stocks already look expensive from a historical perspective. The S&P 500 trades at 21.4 times forward earnings, a premium to the five-year average of 19.3 times forward earnings and the 10-year average of 17.9 times forward earnings, according to FactSet Research.

Is it safe to buy stocks with the S&P 500 roaring through record highs? Warren Buffett has some brilliant advice for investors.

Continue reading

Source Fool.com