A Stock Market Indicator Flashes a Warning Last Seen in 2007. Warren Buffett Explains Why It Matters.

A Stock Market Indicator Flashes a Warning Last Seen in 2007. Warren Buffett Explains Why It Matters.

Key PointsPCE inflation hit 3.8% in April, the highest level in three years, and investors now expect the Federal Reserve to raise interest rates in 2026.Warren Buffett says interest rates (especially the rates on government bonds) are the most important factor in determining stock valuations.The 30-year Treasury bond yield reached 5.18% in May. That hasn't happened since 2007, and the stock market dropped sharply last time.10 stocks we like bet…