MACRO MONDAY 8
S&P500 / M2 Money Supply ( SP:SPX / $WMN2S)
M2 is a broad measure of the US money supply that includes cash, checking deposits, and other types of deposits that are readily convertible to cash such as CDs.
M2 is seen as a reliable metric for forecasting/predicting inflation and for this reason it can be used as leading economic indicator....
Just playing around with M2 money supply chart the reason we have inflation ! We have increased M2 by 40% in the last 2 years a process which usually takes 5-6 years historically.
