Oct 31, 2024
📈 U.S. Stock Market Capitalization to M2 Money Supply Ratio Reaches 280% in Q3 2024
In the third quarter of 2024, the U.S. stock market capitalization soared to 280% of the M2 money supply, marking its third-highest historical peak. This elevated ratio signals a significant concentration of liquid assets within the stock market, highlighting strong investor confidence but also potential risks to liquidity in other economic sectors. This trend raises critical questions about the sustainability of such market valuations, the resilience of investor sentiment, and the broader implications for economic stability and future growth.