Decline in M2 money supply raises concerns about potential economic depressions and high unemployment rates

From Yahoo Finance: 2024-08-04 04:51:00

The stock market has enjoyed significant gains in 2023, but predicting future movements remains difficult. However, certain indicators like the U.S. money supply can offer clues. Recently, M2 money supply has experienced a notable decline, which historically has preceded economic depressions and high unemployment rates. Despite some growth in M2 on a year-over-year basis, past data shows that sharp declines could be a cause for concern. For investors, maintaining perspective and patience during market cycles is essential, as long-term gains have historically been favorable even in the face of short-term uncertainties.



Read more at Yahoo Finance: U.S. Money Supply Has Done Something So Unusual That It Hasn’t Happened Since the Great Depression — and a Big Move in Stocks May Await