U.S. Money Supply Has Done Something So Unusual That It Hasn't Happened Since the Great Depression -- and a Big Move in Stocks May Await

Since the start of 2023 , the iconic Dow Jones Industrial Average, S&P 500, and Nasdaq Composite have rocketed higher by 22% , 42% , and 64% , respectively, as of the closing bell on Aug. 1 .

But a small number of figures have historically correlated with big moves higher or lower in the major stock indexes.

At the moment, we're witnessing history from one of these metrics, which appears to portend trouble to come for the U.S. economy.

Only five instances spanning 154 years where M2 fell by 2% (or more) on a year-over- year basis: 1878, 1893, 1921 , 1931-1933 , and 2023 .

All four prior instances of a 2% or greater drop in M2 money supply correlated with economic depressions and periods of double-digit unemployment for the U.S. economy.

Netflix: if you invested $ 1,000 when we doubled down in 2004 , you’d have $ 330,931 !

Right now, we’re issuing “ Double Down ” alerts for three incredible companies, and there may not be another chance like this anytime soon.

Stock Advisor returns as of July 29, 2024 U.S. Money Supply Has Done Something So Unusual That It Hasn't Happened Since the Great Depression -- and a Big Move in Stocks May Await was originally published by The Motley Fool .