SPX adjusted to M2 money supply
The value of stock market indices is highly correlated with the amount of existing money. That is why to measure the economic cycles, I weight the value of the stock market with that of the money supply (M2), obtaining this chart.
We see how after 2008, business cycles of about 4 years have been established and that, in addition, we are now in an already mature bullish phase. This bullish phase will conclude with the distribution phase mentioned above, with the first resistances at the maximum value of 2007, and the maximum value trend line that continues since 2011 that has recently broken to the upside.
It strikes me that we are not better off now than in 2007 or in 2000, despite all the debt created and the amount of money printed along the way.
Take into account that Business cycles and the value of Bitcoin are highly correlated
We see how after 2008, business cycles of about 4 years have been established and that, in addition, we are now in an already mature bullish phase. This bullish phase will conclude with the distribution phase mentioned above, with the first resistances at the maximum value of 2007, and the maximum value trend line that continues since 2011 that has recently broken to the upside.
It strikes me that we are not better off now than in 2007 or in 2000, despite all the debt created and the amount of money printed along the way.
Take into account that Business cycles and the value of Bitcoin are highly correlated
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