Rising Money Supply Signals Potential Stock Market Gains Ahead
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Money Supply growth accelerated recently after hitting an all-time low in 2022, which could support further stock market gains.
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Even with Fed interest rate hikes, increasing Money Supply has an inflationary effect on the economy.
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The "Wenzel" 13-week Money Supply metric smooths weekly data to show trends, signaling potential economic shifts.
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Money Supply changes have historically preceded stock market pullbacks and rallies, like in 2002, 2008, and 2022.
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Declining Fed reverse repos since December are injecting liquidity and lifting Money Supply and equities.