Jun 26, 2024
U.S. Market Capitalization to Money Supply (M2) Ratio Hits Third Highest Peak in Q1 2024
In the first quarter of 2024, the U.S. market capitalization to money supply (M2) ratio reached its third highest peak in history. This metric, which compares the total market value of all publicly traded U.S. companies to the overall money supply in the economy, signifies a robust and possibly overheated stock market relative to the liquidity available. This elevated ratio indicates a significant divergence between the value investors are placing on equities and the actual cash circulating within the economy. Historically, such peaks have often preceded market corrections or economic adjustments, making this development noteworthy for investors and policymakers alike.
Dataset
| U.S. Market Capitalization to Money Supply (M2) Ratio | |
|---|---|
| Ratio | |
| 1980 | 85% |
| 1981 | 72% |
| 1982 | 76% |
| 1983 | 85% |
| 1984 | 69% |
| 1985 | 92% |
| 1986 | 93% |
| 1987 | 90% |
| 1988 | 93% |
| 1989 | 107% |
| 1990 | 95% |
| 1991 | 123% |
| 1992 | 133% |
| 1993 | 151% |
| 1994 | 147% |
| 1995 | 192% |
| 1996 | 222% |
| 1997 | 267% |
| 1998 | 295% |
| 1999 | 319% |
| 2000 | 307% |
| 2001 | 257% |
| 2002 | 192% |
| 2003 | 235% |
| 2004 | 254% |
| 2005 | 254% |
| 2006 | 277% |
| 2007 | 267% |
| 2008 | 141% |
| 2009 | 177% |
| 2010 | 196% |
| 2011 | 162% |
| 2012 | 178% |
| 2013 | 218% |
| 2014 | 225% |
| 2015 | 203% |
| 2016 | 207% |
| 2017 | 232% |
| 2018 | 212% |
| 2019 | 222% |
| 2020 | 217% |
| 2021 | 225% |
| 2022 | 189% |
| 2023 | 236% |
| 1Q2024 | 273% |
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