Flows into Money Market Funds

Flows into Money Market Funds Just like 2007/2008, investors move to safe assets by raising their cash holdings, despite falling rates. Picture source: BofA Merrill Lynch

China – Required Reserve Ratio vs. M1 Money Supply Growth

China – Required Reserve Ratio vs. M1 Money Supply Growth The People’s Bank of China slashed the reserve requirement ratio for most financial institutions, but M1 money supply growth is currently near the lowest. This is not good news for GDP growth. Picture source: Jeroen Blokland

M1 Money Supply vs. Yield Curve and Recessions

M1 Money Supply vs. Yield Curve and Recessions Great chart showing the correlation between M1 money supply and the yield curve. The key factor for inverted yield curves is tight money. Picture source: BofA Merrill Lynch Global Research

Fed Funds Rate Leads Money-Market Fund Inflows

Fed Funds Rate Leads Money-Market Fund Inflows The chart suggests that Fed funds rate leads money-market fund inflows by two years. Money-market fund inflows stop when risk becomes attractive again. Picture source: Oxford Economics, Macrobond

China – Equity Returns and Money Supply

China – Equity Returns and Money Supply This chart shows the relationship between M2 money supply and China’s stock market since 2003. Picture source: Jeroen Blokland

Money-Market Funds Flows

Money-Market Funds Flows Over the last 4 weeks, money-market funds have seen $95 billion flow. That’s much more larger than in previous years. Picture source: The Wall Street Journal

How to Double your Money in the Market

How to Double your Money in the Market In this video, Josh Brown, financial advisor at Ritholtz Wealth Management LLC, explains why the power of compounding can help you double your money. You may also like “The Long-Term Impact of Compounded Returns” and why Albert Einstein said “Compound Interest Is the Eighth Wonder of the World.”…

What Does M1 Money Supply Growth Tell Us About the Next Recession?

What Does M1 Money Supply Growth Tell Us About the Next Recession? M1 is the money supply that includes types of money commonly used for payment, basically currency outside banks and checking account balances. This is not the perfect recession indicator, but in recent history, it turns negative at least one year before a recession.