skybrian parent
M1 and the Fed's balance sheet are down since 2022, though. What "money printing" do you mean?
The $4T that businesses got handed in march 2020, aka 20% of all USA currency ever printed. Don't think they aren't still playing with it.
But that money has already entered the stock market. It doesn't explain it now.
Interest rates are high now, so in theory investment in the stock market should be lower (and it was for a long time - see all the people investing in treasuries to get the great and safe returns)
You assume it entered the stock market and didn't go elsewhere. There's no way to know where that money went.
2020 is 4 years ago …
It's been living in the reverse repo market, it's slowly trickling out.
> It's been living in the reverse repo market, it's slowly trickling out.
While this is true, the "trickling out" timing doesn't appear to correlate very well stock market increases.
It's true that reverse repos have been decreasing and the stock market increasing. But the timing of movement seems too far out for there to be much of a causal link.
https://www.newyorkfed.org/markets/desk-operations/reverse-r...
Anticipation of forthcoming lowered rates.
Quite a few former crashes coincided with rate reductions.
Hard to tell which caused which.
that's an interesting time frame. It's still up quite a lot.
Say, 2022 is when the Russo-Ukrainian war began, with quite significant consequences for the EU and US economies at the very least.