"Shrinking U.S. Money Supply Signals Potential Stock Market Shift"

The U.S. money supply is shrinking for the first time since the Great Depression, with M2 money supply falling by 4.51% since July 2022. This decline, along with a drop in commercial bank credit, raises concerns about potential trouble for the stock market. While the Federal Reserve and government have tools to mitigate the impact, historical data shows that declines in money supply have been accompanied by economic downturns. However, long-term investors have historically been rewarded, as all 104 rolling 20-year periods in the S&P 500 have generated a profit.