Reported 23 days ago
The recent decline in the U.S. M2 money supply, the first drop of at least 2% since the Great Depression, may indicate an impending economic downturn for Wall Street despite temporary recoveries. Historical data suggests that significant drops in money supply have been correlated with U.S. economic troubles in the past, raising concerns that consumers may cut discretionary spending, a key component for recessionary periods. While historical trends show that market recovery is also likely in the long term, investors should be cautious as they navigate this uncertain economic landscape.
Source: YAHOO