|
PureBytes Links
Trading Reference Links
|
Dumb Question:
Why M3 and not M2, etc?
Kevin Campbell
In a message dated 6/6/00 1:09:32 PM Central Daylight Time, rmac@xxxxxxxx
writes:
> I had sent a copy of the M3 study to the guys at Markethistory.com and
> they did a nice follow up on it. You can see the whole study at:
>
> http://www.markethistory.com/content/dept/stocks/content.html/2750.html
>
> James Bond Style Intrigue: Q and M
> Thanks to some work by a reader, Ron McEwan and our new in-house
> economist, Dr. Veroncia Brinson, we have produced a plot of seasonal
> patterns and M3. This seasonal plot shows that Money Supply Growth
> contracts on a seasonal basis during June and July. Since the Fed has
> been raising rates of late, this seasonal curiosity in Money Supply seems
> quite interesting. The graph projects the seaonal pattern forward to show
> what money supply would look like if it behaved according to the
> seasonals going forward in the year 2000. Then we put a simple line chart
> of the S&P 500 on top of the money supply graph. If you find the green
> arrows on the chart, you can see where peaks in the supply of money seem
> to fit together with peaks in the S&P 500. If you follow the yellow
> arrows, you can see where bottoms in money supply seem to match up with
> some recent bottoms in the S&P 500.
>
>
|