Valuation – the Ratio of S&P 500 Market Capitalization vs. M2 Money Supply What’s priced in? Currently, the S&P 500 trades well above the post-crisis valuation vs. M2 money supply. Image: BofA US Equity & Quant Strategy
S&P 500 vs. Global Money Supply More global stimulus could be bullish for stocks, as global money supply growth tends to push U.S. equities higher. Image: Fidelity Investments
M2 Money Supply and Inflation The link between money supply and inflation seems to have collapsed. Image: Real Investment Advice
U.S. M1 Money Supply Growth vs. Steepness of U.S. Yield Curve The U.S. yield curve is expected to steepen as M1 money supply growth goes to the moon. Image: Longview Economics
U.S. Money Supply M2 and CPI Inflation The increase in the money supply (M2) tends to lead to higher inflation. Image: Financial Times
M2 Money Supply Growth Is the growth in money supply the solution to boost economic growth? Image: J.P. Morgan US Equity Strategy & Global Quantitative Research
Global Money Supply and MSCI World Index Global equities are around 1 standard devation vs. global money supply. It could be bullish for stocks, as global money supply growth tends to push equities higher. Image: Nordea and Macrobond
Blended Money Supply vs. U.S. Nominal GDP Historically, U.S. nominal GDP growth tends to track money supply growth. More inflation to come? Image: Deutsche Bank
Eurozone Real M1 Money Supply Growth vs. Real GDP Growth This chart suggests the relationship between real M1 growth and euro area GDP growth. Image: Longview Economics
S&P 500 Market Cap/M2 Money Supply The S&P 500 market capitalization relative to M2 money supply suggests more upside. Image: Morgan Stanley Research
Money Supply to GDP vs. Equities and Bonds Historically, when money supply exceeds nominal GDP growth, it tends to be bullish for stocks and bonds. Image: Gavekal, Macrobond