Saturday, September 13, 2014

How To Use Money Supply Statistics For Market Predictions | Seeking Alpha

How To Use Money Supply Statistics For Market Predictions | Seeking Alpha



Here is a very good article about the importance of paying attention to the money supply as measured by Federal Reserve M2 statistics.  If the money supply is growing, that is bullish for stocks.  If the money supply is flat or falling, that is bearish.  I have been watching a Federal Reserve graph of the money supply for quite some time, and I have noticed that the chart of the money supply has gone flat like the author mentioned.  This is definitely a time to be defensive about stocks.  Moreover, I am planning to buy the 3x dollar long ETF called UUPT this next week.  The U.S. dollar will actually go up in a time of crisis, and UUPT will become my biggest holding when I buy it next week.



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