Report on Buffett Indicator (2nd Quarter, 2024)

New GDP data of the US has been published, recently. US nominal GDP grew by 1.3% from the 1st quarter of 2024, but the Wilshire 5000 index rose by 4.7% for the same period. As a result, the Buffett Indicator (the right-most column of the table below) increased by 0.032. Although the indicator increased from the previous quarter, the pace was down. The US economy shows signs of a slowdown, and so may the US stock markets.

Year	Quarter	Nominal GDP (red, left scale)	Wilshire5000 Index Quarterly mean (blue, right scale)	Wilshire5000 Index Fitted value (red, right scasle)	Wilshire5000 Index Q.mean÷F.value
2021	1st	22,600	40,525	26,586	1.517
	2nd	23,292	43,581	27,720	1.564
	3rd	23,829	45,026	28,609	1.594
	4th	24,655	47,519	29,991	1.576
2022	1st	25,029	45,565	30,624	1.480
	2nd	25,544	41,627	31,500	1.315
	3rd	25,995	40,448	32,272	1.247
	4th	26,408	39,099	32,986	1.179
2023	1st	26,814	40,640	33,689	1.200
	2nd	27,063	42,370	34,123	1.235
	3rd	27,610	44,978	35,083	1.275
	4th	27.957	44,870	35,695	1.250
2024	1st	28,269	50,233	36,275	1.385
	2nd	28,629	52,570	37,092	1.417