US asset prices are rising despite falling money supply, supported by various factors

From Investing.com: 2024-05-25 06:30:49

US asset prices are rising despite a decrease in money supply, deviating from the usual correlation. Equities, gold, cryptocurrencies, and industrial metals have all seen gains. Factors like artificial intelligence and strong corporate earnings are supporting asset prices. Gold ETFs and regulatory approvals are boosting demand for cryptocurrencies.

The RRP drain is easing, indicating a possible equilibrium in liquidity. With the Fed expected to slow quantitative tightening, money supply growth could pick up. However, recent softening in asset prices raises concerns about a possible decline. Nvidia stock and ether currency are exceptions to the trend.



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