Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks

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Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks

MarketWatch2021-04-25

Much depends on investors' appetite for taking risk. GETTY IMAGES Everyone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. ...

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Ivylow
·2021-04-26
Hi
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Alfred1007
·2021-04-25
You can't possibly keep printing money to keep stock running forever..[無語] [無語]
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Rexzyne
·2021-04-25
Hi
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Prosperity88
·2021-04-25
printing monies...who is the printer ? must buy their stocks...[微笑]
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1
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- 123321Alex:
  true
  2021-04-26
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- 123321Alex:
  maybe
  2021-04-26
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Kqqq
·2021-04-25
Wow
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4
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Lcc73
·2021-04-25
Pls like and comment txs
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2
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- Ccl2:
  Comment
  2021-04-25
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Limth
·2021-04-25
Hope it goes well
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momo88
·2021-04-25
Awesome news!
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Ccl2
·2021-04-25
Pls like and comment txs
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2
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- Legengary:
  Done
  2021-04-25
  Reply
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Jolliann
·2021-04-25
Please reply
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- Jolliann:
  Thank youuuu
  2021-04-25
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- Kqqq:
  Done
  2021-04-25
  Reply
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aazbhsj
·2021-04-25
like n comment pls
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1
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- Legengary:
  Done
  2021-04-25
  Reply
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pinklover91
·2021-04-25
Like please
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3
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- Jolliann:
  ??????
  2021-04-25
  Reply
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Darrs21
·2021-04-25
Like and comment thanks
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- Darrs21Replying tojijimo:
  Done!
  2021-04-26
  Reply
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- Darrs21Replying toDarrs21:
  Comment back on my comment thks
  2021-04-25
  Reply
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- jijimoReplying toDarrs21:
  Reply this too
  2021-04-25
  Reply
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Rara08
·2021-04-25
Nice. Please like.[開心]
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jim83
·2021-04-25
Nice Post and well ?
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HOCK
·2021-04-25
Oh BS
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- JoGreenGreen:
  agree
  2021-04-27
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och
·2021-04-25
Like and comment pls thx!
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- och:
  [微笑]
  2021-04-25
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- Sgalex85:
  Comment and repLy
  2021-04-25
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- Sunc:
  cool
  2021-04-25
  Reply
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l3enji
·2021-04-25
Can I get a reply pls
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- l3enjiReplying tol3enji:
  nice
  2021-04-27
  Reply
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- Mythology:
  Can i oso Get a like back pls
  2021-04-27
  Reply
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- l3enji:
  there u go
  2021-04-26
  Reply
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FanOfJPow
·2021-04-25
Like please
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7
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- 芳芳芳子:
  ok
  2021-04-26
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- jijimo:
  Ok
  2021-04-25
  Reply
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- Sgalex85:
  Comment and reply
  2021-04-25
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CafeLatte
·2021-04-25
Brrrrrr
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- MothersMilk:
  Brrrrr nice
  2021-04-26
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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy it’ll take more than easy money from the Fed to keep sparking this bull market in stocks\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-04-25 12:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page><strong>MarketWatch</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. ...</p>\n\n<a href=\"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":".DJI","symbol_name":"道琼斯","start_time":0,"source_url":"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page","article_id":"2130941364","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2130941364","pubTimestamp":1619323455,"sourceInfo":{"source_id":"lsy1603348471595","name":"MarketWatch"},"weMediaInfo":null,"summary":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. go","collect":0,"end_time":0,"defaultTopTitle":"marketwatch.com","property":[],"viewcount":null,"language":"en","relate_stocks":{".DJI":"道琼斯",".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index"},"translate_title":"为什么要想持续引发这轮股市牛市，需要美联储提供更多的宽松资金","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{".DJI":0.9,".IXIC":0.9,".SPX":0.9},"content_text":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”\nConventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&P 500 has turned in one of its strongest 12-month returns ever.\nThis is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.\nIn searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.\nOn the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.\nAfter this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.\nThat in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.\nAs is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”\nAnother indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.\nThis puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.\n\nThe bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.","kind":null,"is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":375729467,"gmtCreate":1619398009659,"gmtModify":1704723153360,"author":{"id":"3582161778784599","authorId":"3582161778784599","name":"Ivylow","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"3582161778784599","idStr":"3582161778784599"},"htmlText":"Hi","listText":"Hi","text":"Hi","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/375729467","repostId":2130941364,"repostType":2,"repost":{"id":"2130941364","pubTimestamp":1619323455,"share":"https://ttm.financial/m/news/2130941364?lang=&edition=fundamental","pubTime":"2021-04-25 12:04","market":"hk","language":"en","title":"Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks","url":"https://stock-news.laohu8.com/highlight/detail?id=2130941364","media":"MarketWatch","summary":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. go","content":"<p>Much depends on investors' appetite for taking risk. </p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/64c17dcaadc093048638ac550527a91e\" tg-width=\"1260\" tg-height=\"840\"><span>GETTY IMAGES</span></p>\n<p>Everyone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”</p>\n<p>Conventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&amp;P 500&nbsp;has turned in one of its strongest 12-month returns ever.</p>\n<p>This is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.</p>\n<p>In searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.</p>\n<p>On the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.</p>\n<p>After this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.</p>\n<p>That in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.</p>\n<p>As is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”</p>\n<p>Another indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.</p>\n<p>This puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.</p>\n<p><img src=\"https://static.tigerbbs.com/96bbd1cd5123ac2704ccf0953509870f\" tg-width=\"1260\" tg-height=\"849\"></p>\n<p>The bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.</p>","source":"lsy1603348471595","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy it’ll take more than easy money from the Fed to keep sparking this bull market in stocks\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-04-25 12:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page><strong>MarketWatch</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. ...</p>\n\n<a href=\"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".DJI":"道琼斯",".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index"},"source_url":"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2130941364","content_text":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”\nConventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&P 500 has turned in one of its strongest 12-month returns ever.\nThis is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.\nIn searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.\nOn the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.\nAfter this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.\nThat in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.\nAs is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”\nAnother indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.\nThis puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.\n\nThe bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":375521320,"gmtCreate":1619364991160,"gmtModify":1704722888298,"author":{"id":"3570656625926041","authorId":"3570656625926041","name":"Alfred1007","avatar":"https://static.tigerbbs.com/81d8406380cbc0525927f00a9510f2fa","vip":1,"hat":"https://static.tigerbbs.com/4c5ceab71416b120bab4604c0754b52a","crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"3570656625926041","idStr":"3570656625926041"},"htmlText":"You can't possibly keep printing money to keep stock&nbsp;running forever..[無語]&nbsp;[無語]&nbsp;","listText":"You can't possibly keep printing money to keep stock&nbsp;running forever..[無語]&nbsp;[無語]&nbsp;","text":"You can't possibly keep printing money to keep stock running forever..[無語] [無語]","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/375521320","repostId":2130941364,"repostType":2,"repost":{"id":"2130941364","pubTimestamp":1619323455,"share":"https://ttm.financial/m/news/2130941364?lang=&edition=fundamental","pubTime":"2021-04-25 12:04","market":"hk","language":"en","title":"Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks","url":"https://stock-news.laohu8.com/highlight/detail?id=2130941364","media":"MarketWatch","summary":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. go","content":"<p>Much depends on investors' appetite for taking risk. </p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/64c17dcaadc093048638ac550527a91e\" tg-width=\"1260\" tg-height=\"840\"><span>GETTY IMAGES</span></p>\n<p>Everyone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”</p>\n<p>Conventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&amp;P 500&nbsp;has turned in one of its strongest 12-month returns ever.</p>\n<p>This is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.</p>\n<p>In searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.</p>\n<p>On the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.</p>\n<p>After this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.</p>\n<p>That in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.</p>\n<p>As is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”</p>\n<p>Another indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.</p>\n<p>This puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.</p>\n<p><img src=\"https://static.tigerbbs.com/96bbd1cd5123ac2704ccf0953509870f\" tg-width=\"1260\" tg-height=\"849\"></p>\n<p>The bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.</p>","source":"lsy1603348471595","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy it’ll take more than easy money from the Fed to keep sparking this bull market in stocks\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-04-25 12:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page><strong>MarketWatch</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. ...</p>\n\n<a href=\"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".DJI":"道琼斯",".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index"},"source_url":"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2130941364","content_text":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”\nConventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&P 500 has turned in one of its strongest 12-month returns ever.\nThis is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.\nIn searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.\nOn the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.\nAfter this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.\nThat in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.\nAs is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”\nAnother indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.\nThis puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.\n\nThe bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"CN"},{"id":375216861,"gmtCreate":1619345990953,"gmtModify":1704722718131,"author":{"id":"3582321147205123","authorId":"3582321147205123","name":"Rexzyne","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":1,"crmLevelSwitch":0,"authorIdStr":"3582321147205123","idStr":"3582321147205123"},"htmlText":"Hi","listText":"Hi","text":"Hi","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/375216861","repostId":2130941364,"repostType":4,"repost":{"id":"2130941364","pubTimestamp":1619323455,"share":"https://ttm.financial/m/news/2130941364?lang=&edition=fundamental","pubTime":"2021-04-25 12:04","market":"hk","language":"en","title":"Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks","url":"https://stock-news.laohu8.com/highlight/detail?id=2130941364","media":"MarketWatch","summary":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. go","content":"<p>Much depends on investors' appetite for taking risk. </p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/64c17dcaadc093048638ac550527a91e\" tg-width=\"1260\" tg-height=\"840\"><span>GETTY IMAGES</span></p>\n<p>Everyone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”</p>\n<p>Conventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&amp;P 500&nbsp;has turned in one of its strongest 12-month returns ever.</p>\n<p>This is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.</p>\n<p>In searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.</p>\n<p>On the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.</p>\n<p>After this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.</p>\n<p>That in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.</p>\n<p>As is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”</p>\n<p>Another indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.</p>\n<p>This puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.</p>\n<p><img src=\"https://static.tigerbbs.com/96bbd1cd5123ac2704ccf0953509870f\" tg-width=\"1260\" tg-height=\"849\"></p>\n<p>The bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.</p>","source":"lsy1603348471595","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy it’ll take more than easy money from the Fed to keep sparking this bull market in stocks\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-04-25 12:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page><strong>MarketWatch</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. ...</p>\n\n<a href=\"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".DJI":"道琼斯",".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index"},"source_url":"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2130941364","content_text":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”\nConventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&P 500 has turned in one of its strongest 12-month returns ever.\nThis is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.\nIn searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.\nOn the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.\nAfter this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.\nThat in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.\nAs is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”\nAnother indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.\nThis puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.\n\nThe bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":375638012,"gmtCreate":1619330571936,"gmtModify":1704722563896,"author":{"id":"3569644599778803","authorId":"3569644599778803","name":"Prosperity88","avatar":"https://static.tigerbbs.com/673e75041219828ee5fce0d5b00ebbfe","vip":1,"crmLevel":6,"crmLevelSwitch":1,"authorIdStr":"3569644599778803","idStr":"3569644599778803"},"htmlText":"printing monies...who is the printer ? must buy their stocks...[微笑]&nbsp;","listText":"printing monies...who is the printer ? must buy their stocks...[微笑]&nbsp;","text":"printing monies...who is the printer ? must buy their stocks...[微笑]","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/375638012","repostId":2130941364,"repostType":4,"repost":{"id":"2130941364","pubTimestamp":1619323455,"share":"https://ttm.financial/m/news/2130941364?lang=&edition=fundamental","pubTime":"2021-04-25 12:04","market":"hk","language":"en","title":"Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks","url":"https://stock-news.laohu8.com/highlight/detail?id=2130941364","media":"MarketWatch","summary":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. go","content":"<p>Much depends on investors' appetite for taking risk. </p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/64c17dcaadc093048638ac550527a91e\" tg-width=\"1260\" tg-height=\"840\"><span>GETTY IMAGES</span></p>\n<p>Everyone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”</p>\n<p>Conventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&amp;P 500&nbsp;has turned in one of its strongest 12-month returns ever.</p>\n<p>This is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.</p>\n<p>In searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.</p>\n<p>On the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.</p>\n<p>After this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.</p>\n<p>That in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.</p>\n<p>As is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”</p>\n<p>Another indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.</p>\n<p>This puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.</p>\n<p><img src=\"https://static.tigerbbs.com/96bbd1cd5123ac2704ccf0953509870f\" tg-width=\"1260\" tg-height=\"849\"></p>\n<p>The bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.</p>","source":"lsy1603348471595","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy it’ll take more than easy money from the Fed to keep sparking this bull market in stocks\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-04-25 12:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page><strong>MarketWatch</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. ...</p>\n\n<a href=\"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".DJI":"道琼斯",".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index"},"source_url":"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2130941364","content_text":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”\nConventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&P 500 has turned in one of its strongest 12-month returns ever.\nThis is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.\nIn searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.\nOn the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.\nAfter this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.\nThat in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.\nAs is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”\nAnother indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.\nThis puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.\n\nThe bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4131028,"gmtCreate":1619370950130,"gmtModify":1680785552955,"authorId":3571791273839540,"author":{"id":3571791273839540,"idStr":"3571791273839540","authorId":3571791273839540,"name":"123321Alex","avatar":"https://static.tigerbbs.com/807b76e84e44c6640b1aaa50fcb19a44","vip":1,"currentWearingBadge":{"badgeId":"972123088c9646f7b6091ae0662215be-3","templateUuid":"972123088c9646f7b6091ae0662215be","name":"Legendary Trader","description":"Total number of securities or futures transactions reached 300","bigImgUrl":"https://static.tigerbbs.com/656db16598a0b8f21429e10d6c1cb033","smallImgUrl":"https://static.tigerbbs.com/03f10910d4dd9234f9b5702a3342193a","grayImgUrl":"https://static.tigerbbs.com/0c767e35268feb729d50d3fa9a386c5a","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.21","exceedPercentage":"93.32%","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1100},"crmLevel":8,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":375638012,"type":1,"supId":0,"prevId":0,"content":"<u>true</u>","text":"<u>true</u>","html":"<u>true</u>"},{"id":4131029,"gmtCreate":1619370961641,"gmtModify":1680785548368,"authorId":3571791273839540,"author":{"id":3571791273839540,"idStr":"3571791273839540","authorId":3571791273839540,"name":"123321Alex","avatar":"https://static.tigerbbs.com/807b76e84e44c6640b1aaa50fcb19a44","vip":1,"currentWearingBadge":{"badgeId":"972123088c9646f7b6091ae0662215be-3","templateUuid":"972123088c9646f7b6091ae0662215be","name":"Legendary Trader","description":"Total number of securities or futures transactions reached 300","bigImgUrl":"https://static.tigerbbs.com/656db16598a0b8f21429e10d6c1cb033","smallImgUrl":"https://static.tigerbbs.com/03f10910d4dd9234f9b5702a3342193a","grayImgUrl":"https://static.tigerbbs.com/0c767e35268feb729d50d3fa9a386c5a","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.21","exceedPercentage":"93.32%","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1100},"crmLevel":8,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":375638012,"type":1,"supId":0,"prevId":0,"content":"<u>maybe</u>","text":"<u>maybe</u>","html":"<u>maybe</u>"}],"langContent":"CN"},{"id":375699399,"gmtCreate":1619329275411,"gmtModify":1704722545423,"author":{"id":"3572660301203475","authorId":"3572660301203475","name":"Kqqq","avatar":"https://static.tigerbbs.com/f0055eb0f3a7486450d414d868c7bb4e","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"3572660301203475","idStr":"3572660301203475"},"htmlText":"Wow","listText":"Wow","text":"Wow","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/375699399","repostId":2130941364,"repostType":2,"repost":{"id":"2130941364","pubTimestamp":1619323455,"share":"https://ttm.financial/m/news/2130941364?lang=&edition=fundamental","pubTime":"2021-04-25 12:04","market":"hk","language":"en","title":"Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks","url":"https://stock-news.laohu8.com/highlight/detail?id=2130941364","media":"MarketWatch","summary":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. go","content":"<p>Much depends on investors' appetite for taking risk. </p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/64c17dcaadc093048638ac550527a91e\" tg-width=\"1260\" tg-height=\"840\"><span>GETTY IMAGES</span></p>\n<p>Everyone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”</p>\n<p>Conventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&amp;P 500&nbsp;has turned in one of its strongest 12-month returns ever.</p>\n<p>This is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.</p>\n<p>In searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.</p>\n<p>On the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.</p>\n<p>After this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.</p>\n<p>That in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.</p>\n<p>As is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”</p>\n<p>Another indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.</p>\n<p>This puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.</p>\n<p><img src=\"https://static.tigerbbs.com/96bbd1cd5123ac2704ccf0953509870f\" tg-width=\"1260\" tg-height=\"849\"></p>\n<p>The bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.</p>","source":"lsy1603348471595","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy it’ll take more than easy money from the Fed to keep sparking this bull market in stocks\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-04-25 12:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page><strong>MarketWatch</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. ...</p>\n\n<a href=\"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".DJI":"道琼斯",".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index"},"source_url":"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2130941364","content_text":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”\nConventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&P 500 has turned in one of its strongest 12-month returns ever.\nThis is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.\nIn searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.\nOn the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.\nAfter this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.\nThat in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.\nAs is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”\nAnother indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.\nThis puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.\n\nThe bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":375608591,"gmtCreate":1619328518013,"gmtModify":1704722536511,"author":{"id":"3564712937580301","authorId":"3564712937580301","name":"Lcc73","avatar":"https://static.tigerbbs.com/72523840e673b42dada1978a1dc74033","vip":1,"crmLevel":3,"crmLevelSwitch":0,"authorIdStr":"3564712937580301","idStr":"3564712937580301"},"htmlText":"Pls like and comment txs&nbsp;","listText":"Pls like and comment txs&nbsp;","text":"Pls like and comment txs","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/375608591","repostId":2130941364,"repostType":4,"repost":{"id":"2130941364","pubTimestamp":1619323455,"share":"https://ttm.financial/m/news/2130941364?lang=&edition=fundamental","pubTime":"2021-04-25 12:04","market":"hk","language":"en","title":"Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks","url":"https://stock-news.laohu8.com/highlight/detail?id=2130941364","media":"MarketWatch","summary":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. go","content":"<p>Much depends on investors' appetite for taking risk. </p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/64c17dcaadc093048638ac550527a91e\" tg-width=\"1260\" tg-height=\"840\"><span>GETTY IMAGES</span></p>\n<p>Everyone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”</p>\n<p>Conventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&amp;P 500&nbsp;has turned in one of its strongest 12-month returns ever.</p>\n<p>This is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.</p>\n<p>In searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.</p>\n<p>On the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.</p>\n<p>After this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.</p>\n<p>That in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.</p>\n<p>As is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”</p>\n<p>Another indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.</p>\n<p>This puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.</p>\n<p><img src=\"https://static.tigerbbs.com/96bbd1cd5123ac2704ccf0953509870f\" tg-width=\"1260\" tg-height=\"849\"></p>\n<p>The bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.</p>","source":"lsy1603348471595","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy it’ll take more than easy money from the Fed to keep sparking this bull market in stocks\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-04-25 12:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page><strong>MarketWatch</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. ...</p>\n\n<a href=\"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".DJI":"道琼斯",".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index"},"source_url":"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2130941364","content_text":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”\nConventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&P 500 has turned in one of its strongest 12-month returns ever.\nThis is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.\nIn searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.\nOn the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.\nAfter this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.\nThat in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.\nAs is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”\nAnother indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.\nThis puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.\n\nThe bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4127758,"gmtCreate":1619328687522,"gmtModify":1663225854530,"authorId":3581493206135613,"author":{"id":3581493206135613,"idStr":"3581493206135613","authorId":3581493206135613,"name":"Ccl2","avatar":"https://static.tigerbbs.com/d42f34da4e87e15b0fca1740d5c0310a","vip":1,"currentWearingBadge":{"badgeId":"cbe1c45c584340f3bd9ae6c77e0e9981-1","templateUuid":"cbe1c45c584340f3bd9ae6c77e0e9981","name":"Academy Experiencer","description":"5 lessons learned","bigImgUrl":"https://community-static.tradeup.com/news/fb5ae275631fb96a92d475cdc85d2302","smallImgUrl":"https://community-static.tradeup.com/news/c2660a1935bd2105e97c9915619936c3","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.04.27","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":2006},"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":375608591,"type":1,"supId":0,"prevId":0,"content":"Comment","text":"Comment","html":"Comment"}],"langContent":"EN"},{"id":375603231,"gmtCreate":1619328398623,"gmtModify":1704722533121,"author":{"id":"3565147372726492","authorId":"3565147372726492","name":"Limth","avatar":"https://static.tigerbbs.com/a3e8250fe16c4e0e90561c3755568eae","vip":1,"hat":"https://static.tigerbbs.com/a3dee1aa3a3a3c1814833a4d3f8a5669","crmLevel":6,"crmLevelSwitch":0,"authorIdStr":"3565147372726492","idStr":"3565147372726492"},"htmlText":"Hope it goes well","listText":"Hope it goes well","text":"Hope it goes well","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/375603231","repostId":2130941364,"repostType":4,"repost":{"id":"2130941364","pubTimestamp":1619323455,"share":"https://ttm.financial/m/news/2130941364?lang=&edition=fundamental","pubTime":"2021-04-25 12:04","market":"hk","language":"en","title":"Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks","url":"https://stock-news.laohu8.com/highlight/detail?id=2130941364","media":"MarketWatch","summary":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. go","content":"<p>Much depends on investors' appetite for taking risk. </p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/64c17dcaadc093048638ac550527a91e\" tg-width=\"1260\" tg-height=\"840\"><span>GETTY IMAGES</span></p>\n<p>Everyone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”</p>\n<p>Conventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&amp;P 500&nbsp;has turned in one of its strongest 12-month returns ever.</p>\n<p>This is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.</p>\n<p>In searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.</p>\n<p>On the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.</p>\n<p>After this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.</p>\n<p>That in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.</p>\n<p>As is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”</p>\n<p>Another indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.</p>\n<p>This puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.</p>\n<p><img src=\"https://static.tigerbbs.com/96bbd1cd5123ac2704ccf0953509870f\" tg-width=\"1260\" tg-height=\"849\"></p>\n<p>The bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.</p>","source":"lsy1603348471595","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy it’ll take more than easy money from the Fed to keep sparking this bull market in stocks\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-04-25 12:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page><strong>MarketWatch</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. ...</p>\n\n<a href=\"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".DJI":"道琼斯",".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index"},"source_url":"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2130941364","content_text":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”\nConventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&P 500 has turned in one of its strongest 12-month returns ever.\nThis is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.\nIn searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.\nOn the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.\nAfter this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.\nThat in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.\nAs is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”\nAnother indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.\nThis puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.\n\nThe bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":375600228,"gmtCreate":1619328273864,"gmtModify":1704722532148,"author":{"id":"3582421301918966","authorId":"3582421301918966","name":"momo88","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":1,"crmLevelSwitch":0,"authorIdStr":"3582421301918966","idStr":"3582421301918966"},"htmlText":"Awesome news!&nbsp;","listText":"Awesome news!&nbsp;","text":"Awesome news!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/375600228","repostId":2130941364,"repostType":4,"repost":{"id":"2130941364","pubTimestamp":1619323455,"share":"https://ttm.financial/m/news/2130941364?lang=&edition=fundamental","pubTime":"2021-04-25 12:04","market":"hk","language":"en","title":"Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks","url":"https://stock-news.laohu8.com/highlight/detail?id=2130941364","media":"MarketWatch","summary":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. go","content":"<p>Much depends on investors' appetite for taking risk. </p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/64c17dcaadc093048638ac550527a91e\" tg-width=\"1260\" tg-height=\"840\"><span>GETTY IMAGES</span></p>\n<p>Everyone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”</p>\n<p>Conventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&amp;P 500&nbsp;has turned in one of its strongest 12-month returns ever.</p>\n<p>This is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.</p>\n<p>In searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.</p>\n<p>On the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.</p>\n<p>After this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.</p>\n<p>That in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.</p>\n<p>As is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”</p>\n<p>Another indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.</p>\n<p>This puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.</p>\n<p><img src=\"https://static.tigerbbs.com/96bbd1cd5123ac2704ccf0953509870f\" tg-width=\"1260\" tg-height=\"849\"></p>\n<p>The bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.</p>","source":"lsy1603348471595","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy it’ll take more than easy money from the Fed to keep sparking this bull market in stocks\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-04-25 12:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page><strong>MarketWatch</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. ...</p>\n\n<a href=\"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".DJI":"道琼斯",".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index"},"source_url":"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2130941364","content_text":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”\nConventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&P 500 has turned in one of its strongest 12-month returns ever.\nThis is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.\nIn searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.\nOn the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.\nAfter this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.\nThat in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.\nAs is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”\nAnother indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.\nThis puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.\n\nThe bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":375600820,"gmtCreate":1619328266860,"gmtModify":1704722530855,"author":{"id":"3581493206135613","authorId":"3581493206135613","name":"Ccl2","avatar":"https://static.tigerbbs.com/d42f34da4e87e15b0fca1740d5c0310a","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"3581493206135613","idStr":"3581493206135613"},"htmlText":"Pls like and comment txs&nbsp;","listText":"Pls like and comment txs&nbsp;","text":"Pls like and comment txs","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/375600820","repostId":2130941364,"repostType":4,"repost":{"id":"2130941364","pubTimestamp":1619323455,"share":"https://ttm.financial/m/news/2130941364?lang=&edition=fundamental","pubTime":"2021-04-25 12:04","market":"hk","language":"en","title":"Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks","url":"https://stock-news.laohu8.com/highlight/detail?id=2130941364","media":"MarketWatch","summary":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. go","content":"<p>Much depends on investors' appetite for taking risk. </p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/64c17dcaadc093048638ac550527a91e\" tg-width=\"1260\" tg-height=\"840\"><span>GETTY IMAGES</span></p>\n<p>Everyone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”</p>\n<p>Conventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&amp;P 500&nbsp;has turned in one of its strongest 12-month returns ever.</p>\n<p>This is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.</p>\n<p>In searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.</p>\n<p>On the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.</p>\n<p>After this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.</p>\n<p>That in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.</p>\n<p>As is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”</p>\n<p>Another indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.</p>\n<p>This puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.</p>\n<p><img src=\"https://static.tigerbbs.com/96bbd1cd5123ac2704ccf0953509870f\" tg-width=\"1260\" tg-height=\"849\"></p>\n<p>The bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.</p>","source":"lsy1603348471595","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy it’ll take more than easy money from the Fed to keep sparking this bull market in stocks\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-04-25 12:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page><strong>MarketWatch</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. ...</p>\n\n<a href=\"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".DJI":"道琼斯",".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index"},"source_url":"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2130941364","content_text":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”\nConventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&P 500 has turned in one of its strongest 12-month returns ever.\nThis is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.\nIn searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.\nOn the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.\nAfter this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.\nThat in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.\nAs is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”\nAnother indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.\nThis puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.\n\nThe bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4127720,"gmtCreate":1619328466171,"gmtModify":1680785500565,"authorId":3581725742794353,"author":{"id":3581725742794353,"idStr":"3581725742794353","authorId":3581725742794353,"name":"Legengary","avatar":"https://static.tigerbbs.com/54ea8f3cd151a470d34927b0590d8cd9","vip":1,"currentWearingBadge":{"badgeId":"972123088c9646f7b6091ae0662215be-3","templateUuid":"972123088c9646f7b6091ae0662215be","name":"Legendary Trader","description":"Total number of securities or futures transactions reached 300","bigImgUrl":"https://static.tigerbbs.com/656db16598a0b8f21429e10d6c1cb033","smallImgUrl":"https://static.tigerbbs.com/03f10910d4dd9234f9b5702a3342193a","grayImgUrl":"https://static.tigerbbs.com/0c767e35268feb729d50d3fa9a386c5a","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2022.11.15","exceedPercentage":"93.89%","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1100},"crmLevel":4,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":375600820,"type":1,"supId":0,"prevId":0,"content":"Done","text":"Done","html":"Done"}],"langContent":"EN"},{"id":375872764,"gmtCreate":1619328011858,"gmtModify":1704722526977,"author":{"id":"3582410705939766","authorId":"3582410705939766","name":"Jolliann","avatar":"https://static.tigerbbs.com/0e5582410fe15c9641ae08a421a08d09","vip":1,"crmLevel":1,"crmLevelSwitch":0,"authorIdStr":"3582410705939766","idStr":"3582410705939766"},"htmlText":"Please reply","listText":"Please reply","text":"Please reply","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/375872764","repostId":2130941364,"repostType":4,"repost":{"id":"2130941364","pubTimestamp":1619323455,"share":"https://ttm.financial/m/news/2130941364?lang=&edition=fundamental","pubTime":"2021-04-25 12:04","market":"hk","language":"en","title":"Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks","url":"https://stock-news.laohu8.com/highlight/detail?id=2130941364","media":"MarketWatch","summary":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. go","content":"<p>Much depends on investors' appetite for taking risk. </p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/64c17dcaadc093048638ac550527a91e\" tg-width=\"1260\" tg-height=\"840\"><span>GETTY IMAGES</span></p>\n<p>Everyone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”</p>\n<p>Conventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&amp;P 500&nbsp;has turned in one of its strongest 12-month returns ever.</p>\n<p>This is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.</p>\n<p>In searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.</p>\n<p>On the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.</p>\n<p>After this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.</p>\n<p>That in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.</p>\n<p>As is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”</p>\n<p>Another indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.</p>\n<p>This puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.</p>\n<p><img src=\"https://static.tigerbbs.com/96bbd1cd5123ac2704ccf0953509870f\" tg-width=\"1260\" tg-height=\"849\"></p>\n<p>The bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.</p>","source":"lsy1603348471595","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy it’ll take more than easy money from the Fed to keep sparking this bull market in stocks\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-04-25 12:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page><strong>MarketWatch</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. ...</p>\n\n<a href=\"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".DJI":"道琼斯",".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index"},"source_url":"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2130941364","content_text":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”\nConventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&P 500 has turned in one of its strongest 12-month returns ever.\nThis is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.\nIn searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.\nOn the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.\nAfter this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.\nThat in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.\nAs is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”\nAnother indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.\nThis puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.\n\nThe bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4127872,"gmtCreate":1619329583900,"gmtModify":1680785501467,"authorId":3582410705939766,"author":{"id":3582410705939766,"idStr":"3582410705939766","authorId":3582410705939766,"name":"Jolliann","avatar":"https://static.tigerbbs.com/0e5582410fe15c9641ae08a421a08d09","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":375872764,"type":1,"supId":4127832,"prevId":0,"content":"Thank youuuu","text":"Thank youuuu","html":"Thank youuuu"},{"id":4127832,"gmtCreate":1619329259209,"gmtModify":1680785501059,"authorId":3572660301203475,"author":{"id":3572660301203475,"idStr":"3572660301203475","authorId":3572660301203475,"name":"Kqqq","avatar":"https://static.tigerbbs.com/f0055eb0f3a7486450d414d868c7bb4e","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":375872764,"type":1,"supId":0,"prevId":0,"content":"Done","text":"Done","html":"Done"}],"langContent":"EN"},{"id":375872567,"gmtCreate":1619328002359,"gmtModify":1704722526009,"author":{"id":"3552739656093163","authorId":"3552739656093163","name":"aazbhsj","avatar":"https://static.tigerbbs.com/25780cc59d031cb888067c1e4030ed8e","vip":1,"crmLevel":1,"crmLevelSwitch":0,"authorIdStr":"3552739656093163","idStr":"3552739656093163"},"htmlText":"like n comment pls","listText":"like n comment pls","text":"like n comment pls","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/375872567","repostId":2130941364,"repostType":4,"repost":{"id":"2130941364","pubTimestamp":1619323455,"share":"https://ttm.financial/m/news/2130941364?lang=&edition=fundamental","pubTime":"2021-04-25 12:04","market":"hk","language":"en","title":"Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks","url":"https://stock-news.laohu8.com/highlight/detail?id=2130941364","media":"MarketWatch","summary":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. go","content":"<p>Much depends on investors' appetite for taking risk. </p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/64c17dcaadc093048638ac550527a91e\" tg-width=\"1260\" tg-height=\"840\"><span>GETTY IMAGES</span></p>\n<p>Everyone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”</p>\n<p>Conventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&amp;P 500&nbsp;has turned in one of its strongest 12-month returns ever.</p>\n<p>This is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.</p>\n<p>In searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.</p>\n<p>On the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.</p>\n<p>After this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.</p>\n<p>That in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.</p>\n<p>As is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”</p>\n<p>Another indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.</p>\n<p>This puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.</p>\n<p><img src=\"https://static.tigerbbs.com/96bbd1cd5123ac2704ccf0953509870f\" tg-width=\"1260\" tg-height=\"849\"></p>\n<p>The bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.</p>","source":"lsy1603348471595","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy it’ll take more than easy money from the Fed to keep sparking this bull market in stocks\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-04-25 12:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page><strong>MarketWatch</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. ...</p>\n\n<a href=\"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".DJI":"道琼斯",".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index"},"source_url":"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2130941364","content_text":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”\nConventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&P 500 has turned in one of its strongest 12-month returns ever.\nThis is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.\nIn searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.\nOn the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.\nAfter this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.\nThat in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.\nAs is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”\nAnother indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.\nThis puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.\n\nThe bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4127728,"gmtCreate":1619328491320,"gmtModify":1680785504757,"authorId":3581725742794353,"author":{"id":3581725742794353,"idStr":"3581725742794353","authorId":3581725742794353,"name":"Legengary","avatar":"https://static.tigerbbs.com/54ea8f3cd151a470d34927b0590d8cd9","vip":1,"currentWearingBadge":{"badgeId":"972123088c9646f7b6091ae0662215be-3","templateUuid":"972123088c9646f7b6091ae0662215be","name":"Legendary Trader","description":"Total number of securities or futures transactions reached 300","bigImgUrl":"https://static.tigerbbs.com/656db16598a0b8f21429e10d6c1cb033","smallImgUrl":"https://static.tigerbbs.com/03f10910d4dd9234f9b5702a3342193a","grayImgUrl":"https://static.tigerbbs.com/0c767e35268feb729d50d3fa9a386c5a","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2022.11.15","exceedPercentage":"93.89%","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1100},"crmLevel":4,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":375872567,"type":1,"supId":0,"prevId":0,"content":"Done","text":"Done","html":"Done"}],"langContent":"EN"},{"id":375879445,"gmtCreate":1619327588287,"gmtModify":1704722519205,"author":{"id":"3581554974761635","authorId":"3581554974761635","name":"pinklover91","avatar":"https://static.tigerbbs.com/f9f446094931f34aa14cfad66e438f27","vip":1,"crmLevel":4,"crmLevelSwitch":0,"authorIdStr":"3581554974761635","idStr":"3581554974761635"},"htmlText":"Like please","listText":"Like please","text":"Like please","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/375879445","repostId":2130941364,"repostType":4,"repost":{"id":"2130941364","pubTimestamp":1619323455,"share":"https://ttm.financial/m/news/2130941364?lang=&edition=fundamental","pubTime":"2021-04-25 12:04","market":"hk","language":"en","title":"Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks","url":"https://stock-news.laohu8.com/highlight/detail?id=2130941364","media":"MarketWatch","summary":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. go","content":"<p>Much depends on investors' appetite for taking risk. </p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/64c17dcaadc093048638ac550527a91e\" tg-width=\"1260\" tg-height=\"840\"><span>GETTY IMAGES</span></p>\n<p>Everyone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”</p>\n<p>Conventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&amp;P 500&nbsp;has turned in one of its strongest 12-month returns ever.</p>\n<p>This is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.</p>\n<p>In searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.</p>\n<p>On the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.</p>\n<p>After this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.</p>\n<p>That in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.</p>\n<p>As is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”</p>\n<p>Another indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.</p>\n<p>This puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.</p>\n<p><img src=\"https://static.tigerbbs.com/96bbd1cd5123ac2704ccf0953509870f\" tg-width=\"1260\" tg-height=\"849\"></p>\n<p>The bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.</p>","source":"lsy1603348471595","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy it’ll take more than easy money from the Fed to keep sparking this bull market in stocks\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-04-25 12:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page><strong>MarketWatch</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. ...</p>\n\n<a href=\"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".DJI":"道琼斯",".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index"},"source_url":"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2130941364","content_text":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”\nConventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&P 500 has turned in one of its strongest 12-month returns ever.\nThis is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.\nIn searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.\nOn the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.\nAfter this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.\nThat in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.\nAs is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”\nAnother indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.\nThis puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.\n\nThe bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4127636,"gmtCreate":1619327993459,"gmtModify":1680785500535,"authorId":3582410705939766,"author":{"id":3582410705939766,"idStr":"3582410705939766","authorId":3582410705939766,"name":"Jolliann","avatar":"https://static.tigerbbs.com/0e5582410fe15c9641ae08a421a08d09","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":375879445,"type":1,"supId":0,"prevId":0,"content":"??????","text":"??????","html":"??????"}],"langContent":"EN"},{"id":375870896,"gmtCreate":1619327482415,"gmtModify":1704722517427,"author":{"id":"3572053070508728","authorId":"3572053070508728","name":"Darrs21","avatar":"https://static.tigerbbs.com/4369b2898eb8897a14eac55da66c4ba5","vip":1,"crmLevel":5,"crmLevelSwitch":1,"authorIdStr":"3572053070508728","idStr":"3572053070508728"},"htmlText":"Like and comment thanks","listText":"Like and comment thanks","text":"Like and comment thanks","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":5,"repostSize":0,"link":"https://ttm.financial/post/375870896","repostId":2130941364,"repostType":4,"repost":{"id":"2130941364","pubTimestamp":1619323455,"share":"https://ttm.financial/m/news/2130941364?lang=&edition=fundamental","pubTime":"2021-04-25 12:04","market":"hk","language":"en","title":"Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks","url":"https://stock-news.laohu8.com/highlight/detail?id=2130941364","media":"MarketWatch","summary":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. go","content":"<p>Much depends on investors' appetite for taking risk. </p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/64c17dcaadc093048638ac550527a91e\" tg-width=\"1260\" tg-height=\"840\"><span>GETTY IMAGES</span></p>\n<p>Everyone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”</p>\n<p>Conventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&amp;P 500&nbsp;has turned in one of its strongest 12-month returns ever.</p>\n<p>This is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.</p>\n<p>In searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.</p>\n<p>On the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.</p>\n<p>After this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.</p>\n<p>That in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.</p>\n<p>As is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”</p>\n<p>Another indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.</p>\n<p>This puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.</p>\n<p><img src=\"https://static.tigerbbs.com/96bbd1cd5123ac2704ccf0953509870f\" tg-width=\"1260\" tg-height=\"849\"></p>\n<p>The bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.</p>","source":"lsy1603348471595","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy it’ll take more than easy money from the Fed to keep sparking this bull market in stocks\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-04-25 12:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page><strong>MarketWatch</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. ...</p>\n\n<a href=\"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".DJI":"道琼斯",".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index"},"source_url":"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2130941364","content_text":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”\nConventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&P 500 has turned in one of its strongest 12-month returns ever.\nThis is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.\nIn searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.\nOn the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.\nAfter this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.\nThat in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.\nAs is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”\nAnother indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.\nThis puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.\n\nThe bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4137736,"gmtCreate":1619433959388,"gmtModify":1680785660664,"authorId":3572053070508728,"author":{"id":3572053070508728,"idStr":"3572053070508728","authorId":3572053070508728,"name":"Darrs21","avatar":"https://static.tigerbbs.com/4369b2898eb8897a14eac55da66c4ba5","vip":1,"currentWearingBadge":{"badgeId":"7a9f168ff73447fe856ed6c938b61789-1","templateUuid":"7a9f168ff73447fe856ed6c938b61789","name":"Knowledgeable Investor","description":"Traded more than 10 stocks","bigImgUrl":"https://static.tigerbbs.com/e74cc24115c4fbae6154ec1b1041bf47","smallImgUrl":"https://static.tigerbbs.com/d48265cbfd97c57f9048db29f22227b0","grayImgUrl":"https://static.tigerbbs.com/76c6d6898b073c77e1c537ebe9ac1c57","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.21","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1102},"crmLevel":5,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":3577075923922212,"repliedAuthor":{"id":3577075923922212,"idStr":"3577075923922212","authorId":3577075923922212,"name":"jijimo","avatar":"https://static.tigerbbs.com/22bac6d28b6513739fc962def9c071bd","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"objectId":375870896,"type":1,"supId":4127560,"prevId":4127617,"content":"Done!","text":"Done!","html":"Done!"},{"id":4127606,"gmtCreate":1619327855001,"gmtModify":1680785505289,"authorId":3572053070508728,"author":{"id":3572053070508728,"idStr":"3572053070508728","authorId":3572053070508728,"name":"Darrs21","avatar":"https://static.tigerbbs.com/4369b2898eb8897a14eac55da66c4ba5","vip":1,"currentWearingBadge":{"badgeId":"7a9f168ff73447fe856ed6c938b61789-1","templateUuid":"7a9f168ff73447fe856ed6c938b61789","name":"Knowledgeable Investor","description":"Traded more than 10 stocks","bigImgUrl":"https://static.tigerbbs.com/e74cc24115c4fbae6154ec1b1041bf47","smallImgUrl":"https://static.tigerbbs.com/d48265cbfd97c57f9048db29f22227b0","grayImgUrl":"https://static.tigerbbs.com/76c6d6898b073c77e1c537ebe9ac1c57","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.21","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1102},"crmLevel":5,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":3572053070508728,"repliedAuthor":{"id":3572053070508728,"idStr":"3572053070508728","authorId":3572053070508728,"name":"Darrs21","avatar":"https://static.tigerbbs.com/4369b2898eb8897a14eac55da66c4ba5","vip":1,"currentWearingBadge":{"badgeId":"7a9f168ff73447fe856ed6c938b61789-1","templateUuid":"7a9f168ff73447fe856ed6c938b61789","name":"Knowledgeable Investor","description":"Traded more than 10 stocks","bigImgUrl":"https://static.tigerbbs.com/e74cc24115c4fbae6154ec1b1041bf47","smallImgUrl":"https://static.tigerbbs.com/d48265cbfd97c57f9048db29f22227b0","grayImgUrl":"https://static.tigerbbs.com/76c6d6898b073c77e1c537ebe9ac1c57","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.21","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1102},"crmLevel":5,"crmLevelSwitch":1,"individualDisplayBadges":[]},"objectId":375870896,"type":1,"supId":4127560,"prevId":4127599,"content":"Comment back on my comment thks","text":"Comment back on my comment thks","html":"Comment back on my comment thks"},{"id":4127617,"gmtCreate":1619327925253,"gmtModify":1680785504860,"authorId":3577075923922212,"author":{"id":3577075923922212,"idStr":"3577075923922212","authorId":3577075923922212,"name":"jijimo","avatar":"https://static.tigerbbs.com/22bac6d28b6513739fc962def9c071bd","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":3572053070508728,"repliedAuthor":{"id":3572053070508728,"idStr":"3572053070508728","authorId":3572053070508728,"name":"Darrs21","avatar":"https://static.tigerbbs.com/4369b2898eb8897a14eac55da66c4ba5","vip":1,"currentWearingBadge":{"badgeId":"7a9f168ff73447fe856ed6c938b61789-1","templateUuid":"7a9f168ff73447fe856ed6c938b61789","name":"Knowledgeable Investor","description":"Traded more than 10 stocks","bigImgUrl":"https://static.tigerbbs.com/e74cc24115c4fbae6154ec1b1041bf47","smallImgUrl":"https://static.tigerbbs.com/d48265cbfd97c57f9048db29f22227b0","grayImgUrl":"https://static.tigerbbs.com/76c6d6898b073c77e1c537ebe9ac1c57","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.21","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1102},"crmLevel":5,"crmLevelSwitch":1,"individualDisplayBadges":[]},"objectId":375870896,"type":1,"supId":4127560,"prevId":4127606,"content":"Reply this too ","text":"Reply this too ","html":"Reply this too "},{"id":4127599,"gmtCreate":1619327816156,"gmtModify":1680785504232,"authorId":3572053070508728,"author":{"id":3572053070508728,"idStr":"3572053070508728","authorId":3572053070508728,"name":"Darrs21","avatar":"https://static.tigerbbs.com/4369b2898eb8897a14eac55da66c4ba5","vip":1,"currentWearingBadge":{"badgeId":"7a9f168ff73447fe856ed6c938b61789-1","templateUuid":"7a9f168ff73447fe856ed6c938b61789","name":"Knowledgeable Investor","description":"Traded more than 10 stocks","bigImgUrl":"https://static.tigerbbs.com/e74cc24115c4fbae6154ec1b1041bf47","smallImgUrl":"https://static.tigerbbs.com/d48265cbfd97c57f9048db29f22227b0","grayImgUrl":"https://static.tigerbbs.com/76c6d6898b073c77e1c537ebe9ac1c57","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.21","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1102},"crmLevel":5,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":375870896,"type":1,"supId":4127560,"prevId":0,"content":"Done","text":"Done","html":"Done"},{"id":4127560,"gmtCreate":1619327608205,"gmtModify":1680785492104,"authorId":3581554974761635,"author":{"id":3581554974761635,"idStr":"3581554974761635","authorId":3581554974761635,"name":"pinklover91","avatar":"https://static.tigerbbs.com/f9f446094931f34aa14cfad66e438f27","vip":1,"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":375870896,"type":1,"supId":0,"prevId":0,"content":"like back please","text":"like back please","html":"like back please"}],"langContent":"EN"},{"id":375870938,"gmtCreate":1619327466324,"gmtModify":1704722516620,"author":{"id":"3579125484417577","authorId":"3579125484417577","name":"Rara08","avatar":"https://static.tigerbbs.com/ee915a47f3c554f599dce721c2397b4d","vip":1,"hat":"https://static.tigerbbs.com/1c1eed764d9c7ff83dc093fbb9a96bc2","crmLevel":1,"crmLevelSwitch":0,"authorIdStr":"3579125484417577","idStr":"3579125484417577"},"htmlText":"Nice. Please like.[開心]&nbsp;","listText":"Nice. Please like.[開心]&nbsp;","text":"Nice. Please like.[開心]","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/375870938","repostId":2130941364,"repostType":4,"repost":{"id":"2130941364","pubTimestamp":1619323455,"share":"https://ttm.financial/m/news/2130941364?lang=&edition=fundamental","pubTime":"2021-04-25 12:04","market":"hk","language":"en","title":"Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks","url":"https://stock-news.laohu8.com/highlight/detail?id=2130941364","media":"MarketWatch","summary":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. go","content":"<p>Much depends on investors' appetite for taking risk. </p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/64c17dcaadc093048638ac550527a91e\" tg-width=\"1260\" tg-height=\"840\"><span>GETTY IMAGES</span></p>\n<p>Everyone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”</p>\n<p>Conventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&amp;P 500&nbsp;has turned in one of its strongest 12-month returns ever.</p>\n<p>This is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.</p>\n<p>In searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.</p>\n<p>On the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.</p>\n<p>After this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.</p>\n<p>That in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.</p>\n<p>As is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”</p>\n<p>Another indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.</p>\n<p>This puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.</p>\n<p><img src=\"https://static.tigerbbs.com/96bbd1cd5123ac2704ccf0953509870f\" tg-width=\"1260\" tg-height=\"849\"></p>\n<p>The bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.</p>","source":"lsy1603348471595","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy it’ll take more than easy money from the Fed to keep sparking this bull market in stocks\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-04-25 12:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page><strong>MarketWatch</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. ...</p>\n\n<a href=\"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".DJI":"道琼斯",".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index"},"source_url":"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2130941364","content_text":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”\nConventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&P 500 has turned in one of its strongest 12-month returns ever.\nThis is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.\nIn searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.\nOn the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.\nAfter this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.\nThat in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.\nAs is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”\nAnother indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.\nThis puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.\n\nThe bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"CN"},{"id":375842766,"gmtCreate":1619327285555,"gmtModify":1704722511556,"author":{"id":"3579767039150345","authorId":"3579767039150345","name":"jim83","avatar":"https://static.tigerbbs.com/ca8cbdd681b4f0a6f22dde46c1a332a4","vip":1,"crmLevel":1,"crmLevelSwitch":0,"authorIdStr":"3579767039150345","idStr":"3579767039150345"},"htmlText":"Nice Post and well ?&nbsp;","listText":"Nice Post and well ?&nbsp;","text":"Nice Post and well ?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/375842766","repostId":2130941364,"repostType":4,"repost":{"id":"2130941364","pubTimestamp":1619323455,"share":"https://ttm.financial/m/news/2130941364?lang=&edition=fundamental","pubTime":"2021-04-25 12:04","market":"hk","language":"en","title":"Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks","url":"https://stock-news.laohu8.com/highlight/detail?id=2130941364","media":"MarketWatch","summary":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. go","content":"<p>Much depends on investors' appetite for taking risk. </p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/64c17dcaadc093048638ac550527a91e\" tg-width=\"1260\" tg-height=\"840\"><span>GETTY IMAGES</span></p>\n<p>Everyone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”</p>\n<p>Conventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&amp;P 500&nbsp;has turned in one of its strongest 12-month returns ever.</p>\n<p>This is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.</p>\n<p>In searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.</p>\n<p>On the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.</p>\n<p>After this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.</p>\n<p>That in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.</p>\n<p>As is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”</p>\n<p>Another indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.</p>\n<p>This puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.</p>\n<p><img src=\"https://static.tigerbbs.com/96bbd1cd5123ac2704ccf0953509870f\" tg-width=\"1260\" tg-height=\"849\"></p>\n<p>The bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.</p>","source":"lsy1603348471595","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy it’ll take more than easy money from the Fed to keep sparking this bull market in stocks\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-04-25 12:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page><strong>MarketWatch</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. ...</p>\n\n<a href=\"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".DJI":"道琼斯",".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index"},"source_url":"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2130941364","content_text":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”\nConventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&P 500 has turned in one of its strongest 12-month returns ever.\nThis is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.\nIn searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.\nOn the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.\nAfter this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.\nThat in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.\nAs is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”\nAnother indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.\nThis puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.\n\nThe bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":375842879,"gmtCreate":1619327257491,"gmtModify":1704722510750,"author":{"id":"3574326262963990","authorId":"3574326262963990","name":"HOCK","avatar":"https://static.tigerbbs.com/88799e7ae4e69750fd2f85687a24a9e3","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"3574326262963990","idStr":"3574326262963990"},"htmlText":"Oh BS","listText":"Oh BS","text":"Oh BS","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/375842879","repostId":2130941364,"repostType":4,"repost":{"id":"2130941364","pubTimestamp":1619323455,"share":"https://ttm.financial/m/news/2130941364?lang=&edition=fundamental","pubTime":"2021-04-25 12:04","market":"hk","language":"en","title":"Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks","url":"https://stock-news.laohu8.com/highlight/detail?id=2130941364","media":"MarketWatch","summary":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. go","content":"<p>Much depends on investors' appetite for taking risk. </p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/64c17dcaadc093048638ac550527a91e\" tg-width=\"1260\" tg-height=\"840\"><span>GETTY IMAGES</span></p>\n<p>Everyone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”</p>\n<p>Conventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&amp;P 500&nbsp;has turned in one of its strongest 12-month returns ever.</p>\n<p>This is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.</p>\n<p>In searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.</p>\n<p>On the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.</p>\n<p>After this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.</p>\n<p>That in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.</p>\n<p>As is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”</p>\n<p>Another indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.</p>\n<p>This puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.</p>\n<p><img src=\"https://static.tigerbbs.com/96bbd1cd5123ac2704ccf0953509870f\" tg-width=\"1260\" tg-height=\"849\"></p>\n<p>The bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.</p>","source":"lsy1603348471595","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy it’ll take more than easy money from the Fed to keep sparking this bull market in stocks\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-04-25 12:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page><strong>MarketWatch</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. ...</p>\n\n<a href=\"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".DJI":"道琼斯",".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index"},"source_url":"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2130941364","content_text":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”\nConventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&P 500 has turned in one of its strongest 12-month returns ever.\nThis is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.\nIn searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.\nOn the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.\nAfter this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.\nThat in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.\nAs is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”\nAnother indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.\nThis puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.\n\nThe bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4149685,"gmtCreate":1619524723904,"gmtModify":1680785849053,"authorId":3581928188840238,"author":{"id":3581928188840238,"idStr":"3581928188840238","authorId":3581928188840238,"name":"JoGreenGreen","avatar":"https://static.tigerbbs.com/e8ee8423a3906681fed5f2443de2fb07","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":375842879,"type":1,"supId":0,"prevId":0,"content":"<u>agree</u>","text":"<u>agree</u>","html":"<u>agree</u>"}],"langContent":"EN"},{"id":375841594,"gmtCreate":1619327051818,"gmtModify":1704722507824,"author":{"id":"3565663543754207","authorId":"3565663543754207","name":"och","avatar":"https://static.tigerbbs.com/1c195b2a32a90ae2210984600e352644","vip":1,"crmLevel":5,"crmLevelSwitch":0,"authorIdStr":"3565663543754207","idStr":"3565663543754207"},"htmlText":"Like and comment pls thx!&nbsp;","listText":"Like and comment pls thx!&nbsp;","text":"Like and comment pls thx!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":3,"repostSize":0,"link":"https://ttm.financial/post/375841594","repostId":2130941364,"repostType":4,"repost":{"id":"2130941364","pubTimestamp":1619323455,"share":"https://ttm.financial/m/news/2130941364?lang=&edition=fundamental","pubTime":"2021-04-25 12:04","market":"hk","language":"en","title":"Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks","url":"https://stock-news.laohu8.com/highlight/detail?id=2130941364","media":"MarketWatch","summary":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. go","content":"<p>Much depends on investors' appetite for taking risk. </p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/64c17dcaadc093048638ac550527a91e\" tg-width=\"1260\" tg-height=\"840\"><span>GETTY IMAGES</span></p>\n<p>Everyone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”</p>\n<p>Conventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&amp;P 500&nbsp;has turned in one of its strongest 12-month returns ever.</p>\n<p>This is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.</p>\n<p>In searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.</p>\n<p>On the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.</p>\n<p>After this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.</p>\n<p>That in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.</p>\n<p>As is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”</p>\n<p>Another indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.</p>\n<p>This puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.</p>\n<p><img src=\"https://static.tigerbbs.com/96bbd1cd5123ac2704ccf0953509870f\" tg-width=\"1260\" tg-height=\"849\"></p>\n<p>The bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.</p>","source":"lsy1603348471595","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy it’ll take more than easy money from the Fed to keep sparking this bull market in stocks\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-04-25 12:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page><strong>MarketWatch</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. ...</p>\n\n<a href=\"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".DJI":"道琼斯",".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index"},"source_url":"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2130941364","content_text":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”\nConventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&P 500 has turned in one of its strongest 12-month returns ever.\nThis is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.\nIn searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.\nOn the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.\nAfter this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.\nThat in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.\nAs is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”\nAnother indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.\nThis puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.\n\nThe bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4128833,"gmtCreate":1619340174728,"gmtModify":1680785516431,"authorId":3565663543754207,"author":{"id":3565663543754207,"idStr":"3565663543754207","authorId":3565663543754207,"name":"och","avatar":"https://static.tigerbbs.com/1c195b2a32a90ae2210984600e352644","vip":1,"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":375841594,"type":1,"supId":4127468,"prevId":0,"content":"[微笑]","text":"[微笑]","html":"[微笑]"},{"id":4127468,"gmtCreate":1619327347306,"gmtModify":1680785493779,"authorId":3576229504589645,"author":{"id":3576229504589645,"idStr":"3576229504589645","authorId":3576229504589645,"name":"Sgalex85","avatar":"https://static.tigerbbs.com/fddf91378d0ac0f7d96583ba1e0d790b","vip":1,"currentWearingBadge":{"badgeId":"972123088c9646f7b6091ae0662215be-1","templateUuid":"972123088c9646f7b6091ae0662215be","name":"Elite Trader","description":"Total number of securities or futures transactions reached 30","bigImgUrl":"https://static.tigerbbs.com/ab0f87127c854ce3191a752d57b46edc","smallImgUrl":"https://static.tigerbbs.com/c9835ce48b8c8743566d344ac7a7ba8c","grayImgUrl":"https://static.tigerbbs.com/76754b53ce7a90019f132c1d2fbc698f","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.21","exceedPercentage":"60.86%","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1100},"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":375841594,"type":1,"supId":0,"prevId":0,"content":"Comment and repLy","text":"Comment and repLy","html":"Comment and repLy"},{"id":4127516,"gmtCreate":1619327459175,"gmtModify":1680785491375,"authorId":3576729709142650,"author":{"id":3576729709142650,"idStr":"3576729709142650","authorId":3576729709142650,"name":"Sunc","avatar":"https://static.tigerbbs.com/12ea94f8a6bfc2835bf320bed8216f7d","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":375841594,"type":1,"supId":0,"prevId":0,"content":"cool","text":"cool","html":"cool"}],"langContent":"EN"},{"id":375849459,"gmtCreate":1619326932071,"gmtModify":1704722504756,"author":{"id":"3576842974991593","authorId":"3576842974991593","name":"l3enji","avatar":"https://static.tigerbbs.com/4f6737dcbd83a51cc07a69c1a7321191","vip":1,"crmLevel":5,"crmLevelSwitch":0,"authorIdStr":"3576842974991593","idStr":"3576842974991593"},"htmlText":"Can I get a reply pls","listText":"Can I get a reply pls","text":"Can I get a reply pls","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":5,"repostSize":0,"link":"https://ttm.financial/post/375849459","repostId":2130941364,"repostType":4,"repost":{"id":"2130941364","pubTimestamp":1619323455,"share":"https://ttm.financial/m/news/2130941364?lang=&edition=fundamental","pubTime":"2021-04-25 12:04","market":"hk","language":"en","title":"Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks","url":"https://stock-news.laohu8.com/highlight/detail?id=2130941364","media":"MarketWatch","summary":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. go","content":"<p>Much depends on investors' appetite for taking risk. </p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/64c17dcaadc093048638ac550527a91e\" tg-width=\"1260\" tg-height=\"840\"><span>GETTY IMAGES</span></p>\n<p>Everyone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”</p>\n<p>Conventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&amp;P 500&nbsp;has turned in one of its strongest 12-month returns ever.</p>\n<p>This is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.</p>\n<p>In searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.</p>\n<p>On the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.</p>\n<p>After this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.</p>\n<p>That in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.</p>\n<p>As is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”</p>\n<p>Another indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.</p>\n<p>This puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.</p>\n<p><img src=\"https://static.tigerbbs.com/96bbd1cd5123ac2704ccf0953509870f\" tg-width=\"1260\" tg-height=\"849\"></p>\n<p>The bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.</p>","source":"lsy1603348471595","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy it’ll take more than easy money from the Fed to keep sparking this bull market in stocks\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-04-25 12:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page><strong>MarketWatch</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. ...</p>\n\n<a href=\"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".DJI":"道琼斯",".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index"},"source_url":"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2130941364","content_text":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”\nConventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&P 500 has turned in one of its strongest 12-month returns ever.\nThis is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.\nIn searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.\nOn the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.\nAfter this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.\nThat in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.\nAs is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”\nAnother indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.\nThis puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.\n\nThe bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4150290,"gmtCreate":1619529495863,"gmtModify":1680785853360,"authorId":3576842974991593,"author":{"id":3576842974991593,"idStr":"3576842974991593","authorId":3576842974991593,"name":"l3enji","avatar":"https://static.tigerbbs.com/4f6737dcbd83a51cc07a69c1a7321191","vip":1,"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":3576842974991593,"repliedAuthor":{"id":3576842974991593,"idStr":"3576842974991593","authorId":3576842974991593,"name":"l3enji","avatar":"https://static.tigerbbs.com/4f6737dcbd83a51cc07a69c1a7321191","vip":1,"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"objectId":375849459,"type":1,"supId":4127719,"prevId":4134323,"content":"nice","text":"nice","html":"nice"},{"id":4144084,"gmtCreate":1619484069315,"gmtModify":1680785759986,"authorId":3581631227222192,"author":{"id":3581631227222192,"idStr":"3581631227222192","authorId":3581631227222192,"name":"Mythology","avatar":"https://static.tigerbbs.com/190cafdd30075e07fb377edd392ed682","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":375849459,"type":1,"supId":4127719,"prevId":0,"content":"Can i oso Get a like back pls","text":"Can i oso Get a like back pls","html":"Can i oso Get a like back pls"},{"id":4134323,"gmtCreate":1619403565225,"gmtModify":1680785609877,"authorId":3576842974991593,"author":{"id":3576842974991593,"idStr":"3576842974991593","authorId":3576842974991593,"name":"l3enji","avatar":"https://static.tigerbbs.com/4f6737dcbd83a51cc07a69c1a7321191","vip":1,"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":375849459,"type":1,"supId":4127719,"prevId":0,"content":"there u <u>go</u>","text":"there u <u>go</u>","html":"there u <u>go</u>"},{"id":4127719,"gmtCreate":1619328463827,"gmtModify":1680785502921,"authorId":3581631227222192,"author":{"id":3581631227222192,"idStr":"3581631227222192","authorId":3581631227222192,"name":"Mythology","avatar":"https://static.tigerbbs.com/190cafdd30075e07fb377edd392ed682","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":375849459,"type":1,"supId":0,"prevId":0,"content":"Like n Reply my post back? :)","text":"Like n Reply my post back? :)","html":"Like n Reply my post back? :)"},{"id":4127417,"gmtCreate":1619327080299,"gmtModify":1680785492566,"authorId":3565663543754207,"author":{"id":3565663543754207,"idStr":"3565663543754207","authorId":3565663543754207,"name":"och","avatar":"https://static.tigerbbs.com/1c195b2a32a90ae2210984600e352644","vip":1,"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":375849459,"type":1,"supId":0,"prevId":0,"content":"[微笑]","text":"[微笑]","html":"[微笑]"}],"langContent":"EN"},{"id":375854717,"gmtCreate":1619326631139,"gmtModify":1704722501200,"author":{"id":"3574784818260396","authorId":"3574784818260396","name":"FanOfJPow","avatar":"https://static.tigerbbs.com/ca91f9be17312fa7d5a41957afef8050","vip":1,"hat":"https://static.tigerbbs.com/7b75ce0c34afff716602792a5d0929dd","crmLevel":6,"crmLevelSwitch":0,"authorIdStr":"3574784818260396","idStr":"3574784818260396"},"htmlText":"Like please&nbsp;","listText":"Like please&nbsp;","text":"Like please","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":7,"commentSize":3,"repostSize":0,"link":"https://ttm.financial/post/375854717","repostId":2130941364,"repostType":4,"repost":{"id":"2130941364","pubTimestamp":1619323455,"share":"https://ttm.financial/m/news/2130941364?lang=&edition=fundamental","pubTime":"2021-04-25 12:04","market":"hk","language":"en","title":"Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks","url":"https://stock-news.laohu8.com/highlight/detail?id=2130941364","media":"MarketWatch","summary":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. go","content":"<p>Much depends on investors' appetite for taking risk. </p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/64c17dcaadc093048638ac550527a91e\" tg-width=\"1260\" tg-height=\"840\"><span>GETTY IMAGES</span></p>\n<p>Everyone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”</p>\n<p>Conventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&amp;P 500&nbsp;has turned in one of its strongest 12-month returns ever.</p>\n<p>This is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.</p>\n<p>In searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.</p>\n<p>On the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.</p>\n<p>After this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.</p>\n<p>That in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.</p>\n<p>As is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”</p>\n<p>Another indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.</p>\n<p>This puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.</p>\n<p><img src=\"https://static.tigerbbs.com/96bbd1cd5123ac2704ccf0953509870f\" tg-width=\"1260\" tg-height=\"849\"></p>\n<p>The bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.</p>","source":"lsy1603348471595","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy it’ll take more than easy money from the Fed to keep sparking this bull market in stocks\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-04-25 12:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page><strong>MarketWatch</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. ...</p>\n\n<a href=\"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".DJI":"道琼斯",".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index"},"source_url":"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2130941364","content_text":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”\nConventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&P 500 has turned in one of its strongest 12-month returns ever.\nThis is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.\nIn searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.\nOn the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.\nAfter this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.\nThat in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.\nAs is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”\nAnother indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.\nThis puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.\n\nThe bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4135575,"gmtCreate":1619412122783,"gmtModify":1680785623167,"authorId":3577247465509612,"author":{"id":3577247465509612,"idStr":"3577247465509612","authorId":3577247465509612,"name":"芳芳芳子","avatar":"https://static.tigerbbs.com/7f99d9d655e80981cbcdc1701587d4f9","vip":1,"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":375854717,"type":1,"supId":0,"prevId":0,"content":"<u>ok</u>","text":"<u>ok</u>","html":"<u>ok</u>"},{"id":4127618,"gmtCreate":1619327933549,"gmtModify":1680785505927,"authorId":3577075923922212,"author":{"id":3577075923922212,"idStr":"3577075923922212","authorId":3577075923922212,"name":"jijimo","avatar":"https://static.tigerbbs.com/22bac6d28b6513739fc962def9c071bd","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":375854717,"type":1,"supId":4127474,"prevId":0,"content":"Ok","text":"Ok","html":"Ok"},{"id":4127474,"gmtCreate":1619327356805,"gmtModify":1680785493809,"authorId":3576229504589645,"author":{"id":3576229504589645,"idStr":"3576229504589645","authorId":3576229504589645,"name":"Sgalex85","avatar":"https://static.tigerbbs.com/fddf91378d0ac0f7d96583ba1e0d790b","vip":1,"currentWearingBadge":{"badgeId":"972123088c9646f7b6091ae0662215be-1","templateUuid":"972123088c9646f7b6091ae0662215be","name":"Elite Trader","description":"Total number of securities or futures transactions reached 30","bigImgUrl":"https://static.tigerbbs.com/ab0f87127c854ce3191a752d57b46edc","smallImgUrl":"https://static.tigerbbs.com/c9835ce48b8c8743566d344ac7a7ba8c","grayImgUrl":"https://static.tigerbbs.com/76754b53ce7a90019f132c1d2fbc698f","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.21","exceedPercentage":"60.86%","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1100},"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":375854717,"type":1,"supId":0,"prevId":0,"content":"Comment and reply ","text":"Comment and reply ","html":"Comment and reply "}],"langContent":"EN"},{"id":375854017,"gmtCreate":1619326523239,"gmtModify":1704722499748,"author":{"id":"3579757937519576","authorId":"3579757937519576","name":"CafeLatte","avatar":"https://static.tigerbbs.com/9d4c184be7f6d9509a593c26da0303eb","vip":1,"crmLevel":3,"crmLevelSwitch":0,"authorIdStr":"3579757937519576","idStr":"3579757937519576"},"htmlText":"Brrrrrr","listText":"Brrrrrr","text":"Brrrrrr","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/375854017","repostId":2130941364,"repostType":4,"repost":{"id":"2130941364","pubTimestamp":1619323455,"share":"https://ttm.financial/m/news/2130941364?lang=&edition=fundamental","pubTime":"2021-04-25 12:04","market":"hk","language":"en","title":"Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks","url":"https://stock-news.laohu8.com/highlight/detail?id=2130941364","media":"MarketWatch","summary":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. go","content":"<p>Much depends on investors' appetite for taking risk. </p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/64c17dcaadc093048638ac550527a91e\" tg-width=\"1260\" tg-height=\"840\"><span>GETTY IMAGES</span></p>\n<p>Everyone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”</p>\n<p>Conventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&amp;P 500&nbsp;has turned in one of its strongest 12-month returns ever.</p>\n<p>This is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.</p>\n<p>In searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.</p>\n<p>On the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.</p>\n<p>After this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.</p>\n<p>That in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.</p>\n<p>As is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”</p>\n<p>Another indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.</p>\n<p>This puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.</p>\n<p><img src=\"https://static.tigerbbs.com/96bbd1cd5123ac2704ccf0953509870f\" tg-width=\"1260\" tg-height=\"849\"></p>\n<p>The bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.</p>","source":"lsy1603348471595","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why it’ll take more than easy money from the Fed to keep sparking this bull market in stocks</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy it’ll take more than easy money from the Fed to keep sparking this bull market in stocks\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-04-25 12:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page><strong>MarketWatch</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. ...</p>\n\n<a href=\"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".DJI":"道琼斯",".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index"},"source_url":"https://www.marketwatch.com/story/why-itll-take-more-than-easy-money-from-the-fed-to-spark-this-bull-market-11619159724?mod=home-page","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2130941364","content_text":"Much depends on investors' appetite for taking risk. \nGETTY IMAGES\nEveryone “knows” that the U.S. government’s massive stimulus is the reason the U.S. stock market took off from its March 2020 lows. But, as Humphrey Neill, the father of contrarian analysis, constantly reminded his clients: “When everyone thinks alike, everyone is likely to be wrong.”\nConventional wisdom certainly appears to be based on the evidence. M2 money supply (consisting of cash, checking deposits, and so-called “near money” that can be converted into cash with little difficulty) has grown at a faster rate over the past 12 months than at any time over the last six decades. Sure enough, the S&P 500 has turned in one of its strongest 12-month returns ever.\nThis is just one data point. To investigate whether it is the exception or the rule, I analyzed several decades of historical record in search of a statistically significant correlation between the Federal Reserve’s stimulus and the stock market. I came up empty. The bulls therefore need to think twice before reassuring themselves that the bull market will continue just because the Federal Reserve is committed to priming the monetary pump.\nIn searching for possible correlations, I relied on two different measures of the money supply. I focused on M2 Money Supply (cash, checking deposits, and so-called ‘near money’ that can be converted into cash with little difficulty) and the Federal Reserve’s total balance sheet assets (a broader measure which reflects the Fed’s direct intervention in the economy through the purchase of securities and Treasuries). Regardless of the definition, however, the correlations between the stock market and money supply are not stable over time.\nOn the one hand, over the last decade there has been a strong positive correlation, just as we’ve seen over the last 12 months and what the bulls are assuming is the general pattern. But, on the other hand, this correlation was negative before that, which meant that in those earlier years faster money supply growth was more often than not associated with slower stock market growth, and vice versa. That’s just the opposite of what the bulls are assuming.\nAfter this first pass through the data, the most we can say is that sometimes faster money supply growth is good for stocks, and sometimes it isn’t.\nThat in turn suggests that the relationship between the money supply and the stock market is a lot more complex than most investors think. A full discussion of that relationship is beyond the scope of this column, but we know that it depends in large part on investors’ appetite for risk. In a “risk-on” environment, for example, it is more likely that aggressive Fed easing will be considered bullish. But when investors are preoccupied with the downside (“risk-off”) then an aggressive Fed might cause investors to become even more worried.\nAs is often the case, John Maynard Keynes, the famous British economist of a century ago, shrewdly captured this dynamic. He pointed out that central banks will be powerless to stimulate the economy if there is no appetite for risk-taking, and in such an environment the Fed’s efforts will be like “pushing on a string.”\nAnother indication of the complexity of the relationship between money supply and the stock market is how much money velocity varies over time. I’m referring to the average number of times that money changes hands in a given year. When velocity declines, it takes a bigger money supply to have the same economic impact. Or, to put it another way, a bigger money supply won’t be stimulating if velocity declines too much in the process.\nThis puts recent experience in perspective. As you can see from the accompanying chart, velocity plunged at the beginning of the pandemic and remains at one of its lowest levels in six decades.\n\nThe bottom line: The money supply undoubtedly is related to the course of both the economy and the stock market. But its role is neither simple nor straightforward.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4130954,"gmtCreate":1619367821955,"gmtModify":1680785546639,"authorId":3581821379656543,"author":{"id":3581821379656543,"idStr":"3581821379656543","authorId":3581821379656543,"name":"MothersMilk","avatar":"https://static.tigerbbs.com/3cf84b669e13305afc00316807f0c273","vip":1,"crmLevel":6,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":375854017,"type":1,"supId":0,"prevId":0,"content":"Brrrrr nice","text":"Brrrrr nice","html":"Brrrrr nice"}],"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":113,"commentSize":29,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}