Broom

S&P Adjusted for Money Supply

Long
Adjusted for the amount of Money Supply (M1+M2) we still are nearly as overvalued as in '99. The opportunity for several more months or even years of irrational exuberance are a possibility. It's hard to stop such a freight train of a strong trend.... so much momentum behind it.

For now .. LONG
Comment: I meant "not" nearly as overvalued, at least in terms of Money Supply

Comments

I've been shorting this thing since the fall and i'm getting my head handed to me, wtf, you're kidding, this thing is going higher?
+1 Reply
Broom TomPower
@TomPower, Maybe not, this is only one angle to look at. Also compare level of historical PE's...
Reply
Question, how did you manage to adjust the S&P by money supply on this chart? Asking only to learn. Thanks.
+1 Reply
StockPickingEnthusiast StockPickingEnthusiast
@StockPickingEnthusiast, I see the SPY/(M1+M2) but in layman terms, how would one know what that defines or that it even exists?
+3 Reply
Broom StockPickingEnthusiast
@StockPickingEnthusiast, Are you looking for the definition of M1 & M2?
Reply
@Broom, Yes, what exactly is this formula defining. But yes, specifically M1 & M2.
Thx
Reply
Broom StockPickingEnthusiast
@StockPickingEnthusiast, Google is your friend, but simply M1 is phsyical cash money, M2 is digital cash money ( bank balanaces & deposits,CD's Money markets etc...virtual cash ).
Reply
Broom StockPickingEnthusiast
@StockPickingEnthusiast, no problem, I used the 'divided by' function
Reply
Broom Broom
@Broom, AKA the slash
Reply