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Us Money Supply

All articles tagged with #us money supply

finance1 year ago

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

The US money supply, specifically the M2 money supply, has experienced a significant decline for the first time since the Great Depression, which historically foreshadows economic trouble. This decline in money supply could potentially lead to a US recession, impacting corporate earnings and stock market performance. However, historical data shows that economic downturns are typically short-lived, and the stock market has a strong track record of recovering and reaching new highs over the long term, making it important for investors to maintain patience and perspective.

via Yahoo Finance|
#economic-recession#finance#investing
finance1 year ago

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

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.

via The Motley Fool|
#economic-indicators#finance#investing
finance2 years ago

"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.

via The Motley Fool|
#economic-indicators#finance#historical-data
finance2 years ago

Stock Investors Beware: U.S. Money Supply Shrinks to Great Depression Levels

The decline in the U.S. money supply, specifically M2 money supply, which includes savings accounts, money market funds, and certificates of deposit, is raising concerns on Wall Street. This decline, along with other money-based economic indicators such as commercial bank credit tightening and banks hesitating to provide loans, suggests the possibility of a U.S. recession. Historically, significant declines in money supply have been associated with deflationary recessions. While the stock market's performance is dependent on the investment time frame, the decline in money supply and other worrisome money metrics indicate potential risks for investors. However, history has shown that the stock market eventually recovers and reaches new highs, emphasizing the importance of patience in wealth creation.

via The Motley Fool|
#economic-indicators#finance#recession
cryptocurrency2 years ago

Bitcoin's Future Uncertain Amidst Market Volatility and Economic Shifts

Bloomberg Intelligence has warned that Bitcoin and crypto may face a long-term correction due to central banks keeping liquidity tight. The report noted the close relationship between crypto performance and global central bank liquidity levels, with risk assets declining as a result of banks withdrawing liquidity from the economy. The US Federal Reserve’s quantitative tightening coincided with the current all-time high for Bitcoin. Bloomberg Intelligence stated that it may be illogical to expect that stock market, crude oil, copper, and the Bloomberg Galaxy Crypto Index to sustain recent bounces with year-over-year measures of money supply and commercial bank deposits falling around 2%.

via Cointelegraph|
#bitcoin#central-banks#correction