"Unprecedented U.S. Money Supply Signals Major Stock Market Shift"

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Source: The Motley Fool
"Unprecedented U.S. Money Supply Signals Major Stock Market Shift"
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TL;DR Summary

The U.S. money supply, specifically M2, has experienced a significant decline for the first time since the Great Depression, raising concerns about the potential impact on the economy and stock market. Historical data suggests that such declines have been associated with deflationary depressions and double-digit unemployment rates. Additionally, a notable drop in commercial bank credit could be a precursor to an economic downturn. While short-term predictions remain uncertain, long-term investors are reminded of the historical resilience of the stock market and the importance of time and perspective in investment strategies.

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