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The general bullish case for the stock market has received support from
an unusual corner : Dr Milton Friedman !!
In the latest issue of the "Friedberg Commodity" report Dr Friedman was
asked if the current growth in the money supply was excessive and
would eventually lead to a market crash.
Friedman replied :" I do not believe the growth in money supply has been
too easy. If you plot the growth of M2 in the postwar period, the
Greenspan period has the been the most stable with the lowest rate of
growth....(although) the stock market may have overshot, I do not believe
we face a horrendous crash provided the Fed does not change its polciy
of steady monetary growth"
Now the question is - do we take Friedman's comments at face value or
do we apply the usual contrarian spin ?
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