U.S. Money Supply Shrinking at Fastest Rate Since Depression, Stoking Economic Concerns
• The U.S. money supply (M2) is shrinking at the fastest rate since the Great Depression, raising questions about the economy and stock market.
• Historically, significant declines in money supply have preceded economic downturns and stock market struggles.
• However, some economists argue money supply metrics like M2 are less relevant today due to reduced cash demand.
• Factors like digital payments and credit cards have diminished the importance of physical currency.
• While a stock market decline is possible in 2024, long-term prospects remain positive despite money supply concerns.