Global CPI & Market Performance

This chart provides an insightful comparison of Consumer Price Indices (CPI) from various countries and their relationship with the U.S. stock market, as represented by the Wilshire 5000 Total Market Full Cap Index.

1. Consumer Price Index (U.S., Canada, U.K., France, Germany, Italy, Spain): These CPIs measure the average change over time in the prices paid by consumers for a basket of goods and services in each respective country. Rising values indicate increasing inflation, while falling values suggest deflation or disinflation.

2. Wilshire 5000 Total Market Full Cap Index: This serves as a representation of the entire U.S. stock market, offering a broad picture of U.S. equity performance.

By juxtaposing these CPI measures with the U.S. market performance, the chart presents a global inflation perspective alongside domestic market trends.

Potential Interpretations:

Positive Scenario: If the CPIs are relatively stable, indicating controlled inflation, and the Wilshire 5000 Index is trending upwards, it suggests a positive market sentiment, potentially benefiting from a stable global inflationary environment.

Negative Scenario: If the CPIs are rapidly rising, indicating accelerating inflation, and the Wilshire 5000 Index is falling, it could signal that heightened global inflationary pressures may be affecting investor confidence and market performance.