serendipity
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Make of this what you will, but it's not good to my mind
This Hasn't Happened to U.S. Money Supply Since the Great Depression
A 2% or greater decline in M2 money supply, which has only occurred four previous times in 153 years, has historically been a harbinger of bad news for Wall Street.
Following the money leads to other concerning economic datapoints.
The last time M2 money supply contracted by at least 2% was 1933.
Over the long run, Wall Street is a money machine for patient investors. But when examined over a period of months or perhaps a year or two, the stock market can truly be "a riddle wrapped in a mystery inside an enigma," to quote the late Winston Churchill.
Over the trailing two years, the iconic Dow Jones Industrial Average (^DJI -0.43%), broad-based S&P 500 (^GSPC -0.53%), and growth-focused Nasdaq Composite (^IXIC -0.36%), surged to all-time closing highs, plummeted into a bear market, and have now rocketed out of the gate in 2023 into what some investors would deem is a new bull market.
When Wall Street gets whipsawed, investors often turn to an assortment of economic datapoints, probability tools, and other metrics to offer clues as to which direction stocks will head next. Although there is no such thing as a foolproof datapoint, tool, or metric -- if there were, everyone would be using it by now -- there are a number strong historic correlations that have the potential to aid investors who follow specific datasets or indicators.
One such economic datapoint, which has been making history over the past couple of years, suggests a big move may be upcoming for the Dow Jones, S&P 500, and Nasdaq Composite.
U.S. money supply is making history -- but potentially not in a good way
While there is no shortage of economic datapoints to choose from, it doesn't get any more organic than literally following the money. More specifically, I'm talking about U.S. money supply.
https://www.fool.com/investing/2023/08/06/us-money-supply-great-depression-big-move-stocks/
Make of this what you will, but it's not good to my mind
This Hasn't Happened to U.S. Money Supply Since the Great Depression
A 2% or greater decline in M2 money supply, which has only occurred four previous times in 153 years, has historically been a harbinger of bad news for Wall Street.
Following the money leads to other concerning economic datapoints.
The last time M2 money supply contracted by at least 2% was 1933.
Over the long run, Wall Street is a money machine for patient investors. But when examined over a period of months or perhaps a year or two, the stock market can truly be "a riddle wrapped in a mystery inside an enigma," to quote the late Winston Churchill.
Over the trailing two years, the iconic Dow Jones Industrial Average (^DJI -0.43%), broad-based S&P 500 (^GSPC -0.53%), and growth-focused Nasdaq Composite (^IXIC -0.36%), surged to all-time closing highs, plummeted into a bear market, and have now rocketed out of the gate in 2023 into what some investors would deem is a new bull market.
When Wall Street gets whipsawed, investors often turn to an assortment of economic datapoints, probability tools, and other metrics to offer clues as to which direction stocks will head next. Although there is no such thing as a foolproof datapoint, tool, or metric -- if there were, everyone would be using it by now -- there are a number strong historic correlations that have the potential to aid investors who follow specific datasets or indicators.
One such economic datapoint, which has been making history over the past couple of years, suggests a big move may be upcoming for the Dow Jones, S&P 500, and Nasdaq Composite.
U.S. money supply is making history -- but potentially not in a good way
While there is no shortage of economic datapoints to choose from, it doesn't get any more organic than literally following the money. More specifically, I'm talking about U.S. money supply.
https://www.fool.com/investing/2023/08/06/us-money-supply-great-depression-big-move-stocks/
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