@SaltyTeemo, funny meme like 4 months ago, sad reality though (speaking as an American) is that my great grandchildren will still be paying off all the "BBRRR money printer go BRRR"
Alirezaaa
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Can you please briefly say what it shows? I mean what is the relation between SPY and M2 and what we can expect based in this? Thank you
@Kirmo, can come back to this when I have time!! I promise I will, it's just a VERY broad question.
vx7777
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@Alirezaaa, SPX pumped because they printed money. Against the fundamentals.
Alirezaaa
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@vx7777, I see what you mean. but the correlation is not balanced anymore so how it impacts the future? based on what you say it will still pomp correct?
TayFx
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@Alirezaaa, the term "pump" only became popular this year with the influx of robinhood and r/wallstreetbet accounts/traders. This being said, this chart is more or less fundamental in nature and isn't meant to expressive an immediate bias in one or the other
DaddySawbucks
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@TayFx, I believe they want to understand what is M2 and why does this matter?
M2 is liquid assets that are 'near money' and 'actual money' so as to be readily accessible, i.e., liquid assets:
investopedia.com/terms/m/m2.asp
When M2 increases exponentially b/c Fed printed huge amount of new currency and dumped it into markets via loans to business, prices rise...it is inflating the equities bubble like we've never seen before... tulip mania redux.
fibtastic5
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@DaddySawbucks,"it is inflating the equities bubble like we've never seen before" - I think the term "pump" is a fitting term for this