Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: MrGreenJeans who wrote (6586)	7/5/1999 9:02:00 PM
From: Hank Stamper	Read Replies (1) \| Respond to of 15132

"Specifically? Now that is a very good question. I can only point to the fact when M3 has been correlated with equity price increases the correlation has been strong absent monetary inflation. Perhaps this is because when the money supply increases so does the GDP as noted by Milton Friedman and Anna Schwartz (1962) and this increase in GDP is positive for earnings and thus stock prices." Yeah, I know about the correlation--I've seen tables. I sure would like to understand the effects of M-3 more, particularly because changes in the supply have such an impact on the markets. I have a text by Heilbroner and Thurow on economics. Maybe they have some further clarification to offer. I'll post here if my search pays off. Thank you for the comments. To All: For what it's worth: The main Canadian exchange index--The TSE 300--took a big jump today. Big surge today posted on several, somewhat lessors, last week. Ciao, David Todtman