Picking stock market winners is simple.

Find undervalued companies with great products
and services their competitors can’t match.

The best investors on Wall Street have proven this
formula over and over again. The key, however, is
finding undervalued stocks.

In the current market, that’s just about impossible. Stock prices have reached record levels with nowhere left to go but down. That’s why a little-known stock market indicator is flashing red and, putting investors on the alert. Those who know how to take advantage of this situation could profit big even as stock values inevitably fall.

Professional investors affectionately call it the “Warren Buffett Indicator.” During a Fortune magazine interview Buffett said “it is probably the best single measure of where valuations stand at any given moment.”

When this indicator reads 100% it means U.S. stocks are fairly valued. As it shoots above 100%, the stock market becomes more overvalued.

As of this writing, this indicator has skyrocketed past 128.9% and is still rising at 133.2%. Since 1950, the indicator has only been higher twice. In 1999, just before the dotcom bubble burst, the indicator reached 153.6%. It then settled at 137% when all hell broke loose. In late 2015, it rose to 129.7%. Right before the 2008 Financial Disaster, the indicator was at only 108%. Then, of course, the bottom fell out of the market.

Today, by the looks of it, stocks are indeed grossly overvalued. Which means, we’re on the cusp of yet another potential crash. At the very least, a massive correction is coming our way.

How can regular investors protect their portfolio and profit as the market slides?

An overlooked investment could be the perfect answer. A research group says investors can use it to “profit from a market-wide selling frenzy.”

Another investing powerhouse agrees, stating this investment “can greatly enhance a portfolio’s returns.”