Market Trends and the Role of M2

I’ve noticed that M2 has been on the rise over the last six months. This increase is notable because stocks and Bitcoin often mirror M2 movements with a three-month delay. Chart 1  It's a trend worth keeping an eye on as we continue to obeserve market developments. TLDR; a rise in M2 (money in the system) often is an indicator of markets recovering from short term sell offs . 

 

Chart 1

Current M2 supply over the past year as compared to 2020.  We are seeing signs of an increase in global liquidity.  Good for markets. Chart 2  As of today Global M2 is rising very quickly and has it a new all time high this week.  

Chart 2

_Disclaimer:

_{The information in this material is for general information only and is those of the author, not a recommendation or solicitation to buy or sell investment products. This material was developed and produced by James Sullivan, who is not affiliated with the named broker-dealer. Always consult a tax or legal advisor to review your situation comprehensively.  Dollar-cost averaging will not guarantee a profit or protect you from loss but may reduce your average cost per share in a fluctuating market. Investors cannot invest directly in indexes. The performance of any index is not indicative of the performance of any investment. It does not take into account the effects of inflation and the fees and expenses associated with investing.  A diversified portfolio does not assure a profit or protect against loss in a declining mark}