The short version of the Austrian True Money Supply (SVTMS) for the U.S. increased by 0.310% (5.08% annualised) during the most recent week ending 23 December to reach USD 9.8750 trillion calculated based on monetary statistics just released by FRED.
The 1-year growth rate in the money supply continued to drop and at 7.01% remains the lowest reported since week ending 1 December 2008. Since hitting 16.10% for the week ending 22 August 2011, the 1-year money supply growth rate has since plummeted by 9.09 percentage points, or 56.46%. During the same period, the S&P 500 stock market index surged close to 57%. This should serve as a warning sign for long term buy and hold equity investors as such a divergence is not sustainable longer term.
The 1-year growth rate in the money supply continued to drop and at 7.01% remains the lowest reported since week ending 1 December 2008. Since hitting 16.10% for the week ending 22 August 2011, the 1-year money supply growth rate has since plummeted by 9.09 percentage points, or 56.46%. During the same period, the S&P 500 stock market index surged close to 57%. This should serve as a warning sign for long term buy and hold equity investors as such a divergence is not sustainable longer term.
