Why Money Supply matters A LOT
If it can be summarised in 2 words why the strength of the US stock market is so strong and bullish since the Covid 19 pandemic lows in 2020, many will agree it is all about – Money Liquidity.
One of the best measures of money liquidity is called the M2, which refers to a measure of the money supply that includes cash, checking deposits, and easily convertible near money circulating the economy.
The chart below clearly shows the upward trend of the M2 supply since the Covid 19 pandemic started.