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The Motley Fool

U.S. Money Supply Has Done Something So Remarkable That It Hasn't Occurred Since the Great Depression -- and a Big Move in Stocks May Follow

The Motley Fool
Summary
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79% Informative

The data point with the lengthiest perfect track record of foreshadowing a big move in stocks is U.S. money supply.

M2 money supply last did this in 1933 , and it's the first sizable decline in M2 since the Great Depression .

This is only the first time in 150 years that M2 has fallen from an all-time high.

There have been only five occasions since 1870 when M2 dropped by at least 2% from the prior-year period: 1878, 1893, 1921 , 1931 to 1933 , and 2023 .

The first notable drop in M2 since the Great Depression points to consumers having to reduce their discretionary spending.

This tends to be a recipe for a recession.

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Amazon , Apple and Netflix are among the companies that we're issuing alerts for.

There may not be another chance like this anytime soon anytime soon, and there's a chance to get your money back.

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