M2 money supply has continued to shrink by $1T from peak to present sitting at about $20.7T. Roughly, this is $900B per month leaving circulation in a 11 month period.
I’m wondering what the implications are in terms of stocks and real estate given this was largely a run-up from pandemic stimulus.
Will we mean revert on both asset classes, or is the market already pricing money supply in and the rally continues?
Are the feds going to overshoot and cause a depression like some economist say (Lakshman Achuthan, David Rosenberg) with too much QT?
Submitted June 30, 2023 at 02:11AM by Curious-Average9206 https://ift.tt/Ih7rwdD
