Dr. Ed remains quite bullish, predicting MAMU or the Mother of All Meltups.
Running of the Bulls
Sunday, April 25, 2021
.
Have you heard of his MAMA term?
MAMU, here we come! In my latest book, The Fed and the Great Virus Crisis, I predicted that MMT + TINA = MAMU, where MMT = Modern Monetary Theory, TINA = there is no alternative to stocks, and MAMU = the Mother of All Meltups. (See the relevant excerpt.) His figure 5 of M2 shows the Fed was well aware of this measure I remember Brinker tracking each month in his newsletter...
On the other hand, there is plenty of liquidity to drive stock prices higher without a significant correction. M2 is up by an unprecedented $4.2 trillion y/y through February ( Fig. 5). Furthermore, over the past 12 months through February, personal saving totaled a record-shattering $3.1 trillion. All that occurred before the third round of relief checks ($1,400 per eligible person) was sent by the Treasury to over 250 million Americans since mid-March. The M2 chart shows no real correlation or predictive ability which can partially explain how Brinker missed the last few bear markets. |
