Below we took all the US economic indicator reports in each month since the start of 2006 and found the percentage of reports that were better than expected (for inflation and employment rate figures, less than expected is better than expected). On a monthly basis, better-than-expected economic reports have not meant a better performing market. If anything, a strong month for economic reports has coincided with or preceded slight market declines (5/06, 1/07), most likely caused by investor fears over rate hikes.
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Is M2 (money supply) included as one of the indicators?The 8% annualized growth in M2 has me wondering. Is it the FED hitting the gas pedal or is it a consequence of all
these leverage buy outs(LBO's)?
I did some analysis of M2 vs Free Reserves
and I am leaning towards the LBO's.
I also checked the impact of M2 grothw on the S&P. Check my blog:
wrahal.blogspot.com
Posted by: will rahal | May 05, 2007 at 10:19 PM
Here is th link for the M2 analysis:
http://wrahal.blogspot.com/2007/05/s-vs-m2-money-supply.html
Posted by: will rahal | May 06, 2007 at 06:27 PM