S&P Adjusted for Money Supply

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


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?
+2 Reply
Broom StockPickingEnthusiast
@StockPickingEnthusiast, Are you looking for the definition of M1 & M2?
@Broom, Yes, what exactly is this formula defining. But yes, specifically M1 & M2.
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 ).
Broom StockPickingEnthusiast
@StockPickingEnthusiast, no problem, I used the 'divided by' function
Broom Broom
@Broom, AKA the slash
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?
Broom TomPower
@TomPower, Maybe not, this is only one angle to look at. Also compare level of historical PE's...
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