Performance – S&P 500 and U.S. M2 Money Supply Minus Nominal GDP Growth (Leading Indicator) Should investors expect the S&P 500 to perform poorly over the next 12 months? Image: Alpine Macro
U.S. Excess Liquidity (M2 Minus Nominal GDP) and S&P 500 P/E Ratio (Leading Indicator) U.S. excess liquidity (M2 minus nominal GDP) tends to lead the S&P 500 P/E ratio by 6 months. Image: Nordea and Macrobond
S&P 500 and U.S. M2 Minus Bank Credit (Leading Indicator) U.S. M2 minus bank credit tends to lead the S&P 500 by 6 months. Image: Alpine Macro
Velocity of M2 Money Stock in the U.S. vs. The U.S. Deficit The rise in the U.S. deficit has coincided with a collapse in M2 velocity. Image: Real Investment Advice
Velocity of M2 Money Stock in the U.S. Is there really an inflation threat? The surge in M2 money growth has coincided with a collapse in M2 velocity. Image: The Daily Shot
Excess Liquid Savings: M2 Trend vs. Actual Could excess liquid savings drive the U.S. stock market higher? Image: BofA Global Research
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
M2 Money Supply and Inflation The link between money supply and inflation seems to have collapsed. Image: Real Investment Advice
U.S. Money Supply M2 and CPI Inflation The increase in the money supply (M2) tends to lead to higher inflation. Image: Financial Times
U.S. Inflation – M2 Money Supply and Consumer Price Index M2 money supply growth could be the key to unlocking inflation in the United States. Image: Morgan Stanley Wealth Management
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