Updated Graph of Buffett Indictor

Now, the gap between nominal GDP and the Wilshire 5000 total market full capitalization index has shrunk in two consecutive quarters. Facing high inflation, the FED keeps raising interest rates. Consequently, the economy would slip into a recession or, more precisely, stagflation. The Wilshire index has dropped by 20% since January this year and would fall by another 20% to 30% reaching the level corresponding to nominal GDP.