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This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1986 it has nearly tripled the S&P 500 with an average gain of +26% per year. "Rates were very low and central bank balance sheets (and money creation) had surged. By Andrew Graham , Contributor June 8, 2020 There is no warranty against interference with your enjoyment of any materials, information or services (including, but not limited to, any data, text, images, sounds or computer programs (including collections and compilations of them) or against infringement.Neither William Blair nor any of its principals, officers, employees or affiliates shall be liable for any direct, indirect, special, consequential, punitive, exemplary and/or incidental damages of any kind whatsoever (including, but not limited to, lost profits or attorneys' fees) in any way due to, resulting from or arising in connection with your access to, inability to access, or use of the site, or from your reliance on any information provided on the site, even if William Blair has been advised of the possibility of such damages. The fact that 2020 is a presidential election year makes additional aid far more likely.Nevertheless, the existence of easy money, along with the promise of more of it, continues to be underappreciated.It’s why stocks are currently exceeding expectations. Nothing contained herein shall be construed as conferring to you in any manner, whether by implication, estoppel or otherwise, any license, title, or ownership of or to any intellectual property right of William Blair or any third party.We reserve the right to modify the William Blair website and the materials, features and services provided on the site at any time without prior notice to you.The materials, information and services provided on the William Blair website are provided "as is" without warranty of any kind, either expressed or implied, including, but not limited to, the implied warranties of merchantability and fitness for a particular purpose. These cookies may track and provide trend analysis on how our users interact with our website, or help us to track errors. "This is very different from the post [financial crisis] era when aggressive monetary policy was unmet with a willing borrower and spender.
To put that in perspective, year-over-year growth in the M2 money supply had never exceeded 15% until 2020, according to Fed records dating back to 1981.Normally characterized by slow, steady growth, the M2 supply has grown 20% from $15.33 trillion at the end of 2019 to $18.3 trillion at the end of July.
Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. The hardest kind of economic relationship to identify is a causal relationship -- one, for example, in which a rise in the stock market causes a rise in real estate prices. For example the "Help" section on your browser may assist you.
But if bank deposits yield 2 percent or less, the investor will look for riskier, yet potentially more profitable alternatives, such as stocks.An additional reason stocks do well when the money supply is high is the increase in general demand in the economy. Unless otherwise expressly set forth herein, William Blair makes no representations that transactions, products or services discussed on or accessible through the Site are available or appropriate for sale or use in all jurisdictions or by all users, or that access by any user in the place it is located is not illegal or prohibited. Includes correlation matrix for global funds, stocks and etfs In fact, the physical money makes up less than one-tenth of all the money in a typical, developed economy.