At some point, the sellers stop selling, the buyers take control, and the stock starts rising again. It's a level where a stock trending down stops sinking and reverses course. Support is essentially a floor for stock prices. Environmental, Social and Governance (ESG) Investing.Bond Funds, Bond ETFs, and Preferred Securities.ADRs, Foreign Ordinaries & Canadian Stocks.Environmental, Social and Governance (ESG) ETFs.Environmental, Social and Governance (ESG) Mutual Funds.Benefits and Considerations of Mutual Funds.And I wrote a book called MAKE about building startups without funding. I'm on Twitter too if you'd like to follow more of my stories. I like to have skin in the game so I've gone ahead and will give my contractors for Nomad List and Remote OK a minimum of 10% per year increase in income, starting with this month. 2% per year) that doesn't tell the whole story. 10% per year), instead of the government's Consumer Price Index based inflation (e.g. We should also argue for having people's income/salary be adjusted for real inflation numbers (e.g. Well, we should probably educate people about inflation with projects like these and help them invest in long term diversified portfolios so their money stays the same value or grows in value. So it probably increases wealth inequality. And that's probably people who are already rekt. Many people who don't have access to, or the knowledge or time to invest in the stock market and they'll feel the biggest negative effects from inflation. But it's complicated matter so we're not sure.īy investing in the stock markets, even if there's lots of inflation, at least my money stays the same value. My conclusion is, adjusting the stock market for the money supply doesn't tell the whole story, but it does tell that there's a lot of money printing going on and if that continues we're probably making a lot of people poorer. I submitted it to HN and it went to the front page: The reactionsĪs always HN'ers had were very opinionated. Even with those you can see the effect though. M1 is a limited measure as it only includes physical money and bank accounts. Instead we're almost at the lowest point since the pandemic started. The visual above is already quite telling, if you adjust for M1 (the red line) the markets have crashed early 2020 when COVID hit. and adjust the length of time the chart goes back. You can choose between M1, M2, MB and adjust the S&P500, the Dow Jones DJI, etc. The top boxes are select boxes and you can adjust what you want to see and it live updates. I made it very simple inspired by Stonks in BTC. It imports the data from the sheet into a SQLite db and puts the data in a ChartJS page. Then I made a site around it called (and now renamed it to ). I downloaded the data from the Fed and put it in a Google Sheet: And make a site Or was it just the printing of money and actually the numbers went up but the intrinsic value stayed the same? Let's find the data Thinking about this I wondered if my stock and ETF investments actually went up this year. The intelligentiae, libertarian and crypto people say this is causing inflation (your money becomes worth less). What that means for inflation is heavily argued about by different sides. The M1 money supply has almost doubled since. Since the COVID19 pandemic started, the printing has gone to a whole different level though. This is called Quantitative Easing (QE) and is a way to keep economies afloat if they go through bad times. Quantitative EasingĪs you see, since the 2008 Financial Crisis the supply has grown a lot, this means the Fed has essentially printed money and injected it into the economy (usually by investing in the markets). There's a few more measurements like M2 and MB, which is the total Monetary Base, e.g. M1 roughly means the U.S.-dollar money supply consisting of physical currency and what's in bank accounts. This week I kept looking at the M1 money supply chart on the Fed's website: TL:DR I made a site called to see if stock markets actually grew when you discount for inflation by the Fed printing record amounts of money from thin air.
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