The M2 Catch-Up

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Here are up-to-date ratio charts, showing major cash indexes divided by the M2 money supply, which I believe is the only honest representation of equity values. Suffice it to say, they’re all toppy, to say the least.

Dow Composite
Russell 2000
Dow Transportation

On top of this, the ratio of small caps to S&P 500 indicates that the small caps are in some serious trouble for years to come.