M2 money supply chart

Look at the highs in M2 followed by highs in WIL500.
If I'm reading this right, the recent peak in money supply should be followed by a peak in stock prices.

Mike Burk: LINK

The money supply chart below was provided by Gordon Harms.
Money supply is growing at the fastest rate in years.

The money supply is not growing fastest in years, the money supply is growing the fastest ever.

So far, it is only inflation, the market is putting Chairman Bernanke's theory about the power of the central banks to prevent a deflation. This is not a growth oriented policy, it is about protecting the asset values by taxing the majority in the interest. Although the growth in the money supply can offset the price deterioration to a degree and the confidence can help the economic activity pick up quicker, there is a limit to how fast the fundamentals can improve and generate real growth...

I know...

http://stockcharts.com/c-sc/sc?s=$USD:$GOLD&p=M&st=2001-01-01&i=p37020204254&a=134672652&r=8889.png

Edited by Rogerdodger, 30 March 2008 - 04:09 PM.

Considering the movement of the market, it's ironically showing how bad things are getting for stocks and the economy as opposed to how good things are getting. It's helping keep the market from crashing. It's helping protect an orderly drop.