Yes, the Dow has skyrocketed 2, points since President Trump's victory, and the Dow is in the midst of its longest streak of records since But Buffett hasn't lost his legendary optimism, despite warning signs about the Trump rally. The key, Buffett said, is that interest rates remain extremely low. That makes stocks look like a good deal by comparison.

Of course, the risk is that rates finally rise, especially given the Federal Reserve's plans for several rate hikes this year and Trump's promise to stimulate the economy despite low unemployment levels. The stock market rally: Too far, too fast. Buffett is a reliable optimist when it comes to the U. But his latest endorsement of stocks comes at a time of growing concern that the Trump rally has gone too far, too fast.

Not only has the Dow closed at a record in each of the last 11 trading days, but all three major indexes ended last week at all-time highs. Another sign of the upbeat mood on Wall Street: It's also tough to argue the stock market is a bargain, at least when it's looked at by itself.

One common way to value the market is to compare prices to projected earnings.

That's the highest price-to-earnings ratio since May , FactSet said. But the key, according to Buffett, is that the year Treasury yield is sitting at just 2. That's not only low historically, it's actually down considerably from nearly 2. Instead of waiting for prices to cool off, Buffett and his Berkshire Hathaway BRKA are still buying. Late last year Berkshire ventured into airlines , an industry Buffett previously bashed as a "death trap. Buffett also said "we've got no intention of selling" out of Berkshire's long-term holdings, including scandal-ridden Wells Fargo.

In November, Buffett told CNN's Poppy Harlow that he hadn't sold a single share of Wells Fargo WFC despite the bank making a "terrible mistake" by keeping in place sales goals that "corrupted people.

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