There have been countless excuses for the stock market to fall. And fall it has over the last 10+ years, only to dust itself and head higher than it was previously. Its called an uptrend.
And despite so many calls for an equity bubble for the stock market, citing 'stretched' valuations, it has continued to outsmart the most 'intelligent' bearish market prognosticator. Pages upon pages of research on why the stock market should be trading 40%+ lower than it is today.
And yet what if it all came down to something as simple as the amount of money in circulation.
It Makes Sense.
"Stocks have never been this expensive before..." guess what? in 2020 --->>money supply has never been this high before.... Mortgage rates have never been low before ... the FED has never bought corporate bonds before...
— UPBOptionMil (@UPBOptionMil) August 24, 2020
MONEY SUPPLY!
It Makes Sense.
We found out yesterday that Money supply hit a new record high in April.
Guess what else hit a new record high in April? The stock market.
Up until last year and the recent onslaught of IPO's... supply of common stock has been in decline while supply of money has been on the rise.
As long as money supply continues to outgrow the supply of the stock market,, prices will rise. That's what they've been doing up till now.
It makes sense.
...it's a lot simpler than those 35 page bearish articles you might have had the misfortune of reading the last 10+ years.
And... the bottom line... it's been right.