Money Supply Growth Continues To Accelerate

Summary

• Money Supply can be a leading indicator and help explain the action in the stock market.
• Money Supply fell the entire year of 2022, bottomed in early 2023 and has been rising pretty steadily since which has helped fuel the stock market to all-time highs.
• The 12 consecutive periods of increased money supply are from Nov 2023 through October 2024. October growth was another elevated month.

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Money Supply is a very important indicator. It helps show how tight or loose current monetary conditions are regardless of what the Fed is doing with interest rates. Even if the Fed is tight, if Money Supply is increasing, it