SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Stocks Crossing The 13 Week Moving Average <$10.01

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Sergio H who wrote (8809)5/21/2001 1:37:02 PM
From: James Strauss  Read Replies (2) of 13094
 
Sergio:

I updated the M2 chart for only 2000 and 2001...
economagic.com

Note the steep rise in M2 while the market was tanking... This flies in the face of the theory that huge liquidity is good for markets...

What do I get from this? We had an overpriced market and an end to an economic cycle... No amount of liquidity was going to get companies to buy more equipment when they didn't need anymore... This can be related to the current rate cut cycle... Will lower rates sell more of your products if your customers are up to their necks in inventory? That remains to be seen... In the meantime, the market is looking out 6 months or more and sees supply and demand coming into balance... siliconinvestor.com

Jim
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext