Four Key Ratios

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Even though this market feels incredibly “stuck” and under-the-thumb of the Fed, I have faith in the gargantuan cycles of price history, Powell be damned. Here below are two important equity indexes over a period if decades, each divided by the M2 money supply, thus providing a more realistic picture of values and trends.

slopechart RUT FR M
Russell 2000 small caps
slopechart TRAN FR M
Dow Transportation
slopechart IWM TLT
Small Caps (IWM) divided by bonds (TLT)
slopechart GLD FR M
The great hope……….gold! Divided by M2.