The “Buffet Rule” has that equity market value can be considered by the ratio of current equity value to GDP current dollars or E/GDP. GDP current dollars is NGDP.
The Buffet Indicator is related to “Tobin Q” where the equity value should be equivalent to the replacement cost of the assets. The Q Ratio being the market value divided by the replacement cost of the firms assets.
The Buffet Indicator is applied to the most broad based equity index, the Wilshire 5000, which has a current value of approximately $40 Trillion, in excess of the NGDP level of approximately $27 trillion.