Is the financial system entering a new era?
This chart is one of the clearest and most striking indicators of the S&P 500 and Monetary Expansion around the world on a monthly basis.
Is history repeating itself or is the financial system entering a new era?
Markets are rising again after the Mortgage Real Estate Crisis in 2008 and the Covid-19 Pandemic in 2020. But what is behind this rise? Could the fact that the S&P 500 has held its value while the money supply has skyrocketed be a harbinger of a new growth cycle?
What is remarkable;
In the 2008 Real Estate Crisis, this ratio, which had been steadily moving above the trend line, was pulled down sharply and trapped below the trend line. For many years, there was an invisible pressure to maintain the trend below this line.
Whenever the trend line started to be tested again, this rate was pushed down again by the Covid-19 pandemic in 2020.
January 2024 is a historic turning point;
It managed to rise above the trend line after exactly 16 years and entered a steady uptrend. This development sends strong signals that a brand new economic order has been established in the world.
So what happens now?
After testing a new ATH level, what crisis or crises await us in the markets? Or is the financial system heading for a completely different course from the historical scenario this time?
Is history repeating itself or is the financial system entering a new era?
Markets are rising again after the Mortgage Real Estate Crisis in 2008 and the Covid-19 Pandemic in 2020. But what is behind this rise? Could the fact that the S&P 500 has held its value while the money supply has skyrocketed be a harbinger of a new growth cycle?
What is remarkable;
In the 2008 Real Estate Crisis, this ratio, which had been steadily moving above the trend line, was pulled down sharply and trapped below the trend line. For many years, there was an invisible pressure to maintain the trend below this line.
Whenever the trend line started to be tested again, this rate was pushed down again by the Covid-19 pandemic in 2020.
January 2024 is a historic turning point;
It managed to rise above the trend line after exactly 16 years and entered a steady uptrend. This development sends strong signals that a brand new economic order has been established in the world.
So what happens now?
After testing a new ATH level, what crisis or crises await us in the markets? Or is the financial system heading for a completely different course from the historical scenario this time?
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