For the First Time Since the Great Depression, U.S. Money Supply Is Shrinking. History Suggests This Spells Trouble for Stocks.
Volatility has been the name of the game on Wall Street since this decade began. Since 2020, the iconic Dow Jones Industrial Average (DJINDICES: ^DJI), broad-based S 500 (SNPINDEX: ^GSPC), and growth-focused Nasdaq Composite (NASDAQINDEX: ^IXIC), have bounced back and forth between bear and bull markets.
These wild fluctuations have left investors to question what's next for stocks. Although there isn't any one indicator that can, with 100% accuracy, forecast what's to come in the short run for Wall Street, there are quite a few economic datapoints that have an uncanny track record of predicting short-term directional movements in the Dow Jones, S 500, and Nasdaq Composite. One such metric that should be raising some eyebrows is U.S. money supply.
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Source Fool.com
