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Yes, there have been notable historical cases where extreme stock market valuations (high Buffett Indicator) paired with liquidity strains signaled economic risks. - **Dot-com bubble (2000)**: Indicator hit ~137% (then a record). Illiquidity emerged as selling accelerated; Nasdaq fell 78%, erasing $7T+ in wealth and triggering a recession. - **2008 financial crisis**: Indicator ~105% (overvalued territory). Liquidity evaporated in credit/equity markets, amplifying forced selling and leading to global downturn. - **1987 Black Monday**: Sudden liquidity withdrawal caused a 22% one-day drop, though valuations weren't as stretched. These show how low "other-side" liquidity can turn corrections into crises via panic and deleveraging. High readings today (~220-230%) echo those warnings, but timing isn't certain—markets can stay elevated.

Bought some Microsoft because it turned into a Micro Cap I’ll hold for 2-3 years