Edward Dowd on GETTR : Let me speak as if to a child…when M2 (money supply) year over year growth goes negative historically bad things happen…like financi...
Let me speak as if to a child…when M2 (money supply) year over year growth goes negative historically bad things happen…like financial panics. It happened in November 2022. It’s not a market timing tool but a clear warning that one should be seriously considering cash (money markets, t-bills etc) as a part of their asset allocation until the uncertainty clarifies. IMHO we are nowhere near clarity yet. Clarity for me is lower prices reflecting reality.
Let me speak as if to a child…when M2 (money supply) year over year growth goes negative historically bad things happen…like financial panics. It happened in November 2022. It’s not a market timing tool but a clear warning that one should be seriously considering cash (money markets, t-bills etc) as a part of their asset allocation until the uncertainty clarifies. IMHO we are nowhere near clarity yet. Clarity for me is lower prices reflecting reality.