Money

The Bears' Two Favorite Charts

May 8, 2023 2 min read paid

To support their pessimistic outlook, bearish prognosticators tend to focus on two charts. The first one shows the S&P 500 versus the securities held by the Fed, which account for most of the Fed’s balance sheet (chart). They contend that the bull market in stocks from 2009 through 2021 was driven by the Fed’s various quantitative easing programs. The S&P 500 peaked at a

Ed Yardeni

Running Out of Money?

Jan 2, 2023 2 min read members

Monetarists seem to be making a comeback, and they are sounding the alarm that the recent weakness in the M2 measure of money is confirming that monetary policy already is tight enough to cause a recession. We’ve addressed this issue in the past, and we still aren’t alarmed.

Ed Yardeni

How Worrisome Is April’s Drop in M2?

May 25, 2022 1 min read

How worried should we be about April’s $81.2 billion drop in M2? And what about the $91.2 billion drop in demand deposits from January through April? Furthermore, the Fed is about to start a second round of quantitative tightening (QT2) in June. Won’t that dry up liquidity, causing a recession and further stock market losses? Maybe, but: (1) M2 is still more than $3 trillion above

Ed Yardeni

Page 1 of 1

The Bears' Two Favorite Charts

Running Out of Money?

How Worrisome Is April’s Drop in M2?