A total of around 7.3 billion facebook/" target="_blank">shares were traded on Wednesday, higher than the last 20-session average of 6.6 billion shares. The tech-laden Nasdaq Composite Index declined 0.4% to close at 6,072.55. Moreover, the central bank did not disclose any details regarding its plans to reduce its $4.5 trillion balance sheet. Fed's Two Day Policy MeetingThe central bank on Wednesday decided not to raise key interest rates at its recent two-day policy meeting. The Dow continued to gain on Wednesday after the central bank kept monetary policy unchanged as expected.
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The co-movement of the stock market and the money supply to saving ratio has been obvious especially in recent decades. Enter the money supply to saving ratio (MS/S), a ratio based on an insight F.A. This should be worrying for stock market investors since stocks crashed following the peaks in the money supply to saving ratio in '01 and '08. As for the denominator in the ratio (saving), people will increase the proportion of income saved when uncertainty increases. The table below depicts the annualised price changes in the Russell 3000 stock market index for four different time periods following the 2001 and 2008 peaks in the MS/S ratio.
![Analysts Divided Over Stock Market Valuation In Trump Era]()
CHARLES LANE, BYLINE: The stock market is overvalued by conventional measures. He says an overvalued S&P is justified because the chance for recession right now is slim to none. REBECCA PATTERSON: What's another good water analogy - choppy waters, deep waters, boiling waters. But some are skeptical that Trump can deliver and think the market is overvalued. (SOUNDBITE OF THE MEMORY BAND SONG, "WHEN I WAS ON HORSEBACK") Transcript provided by NPR, Copyright NPR.
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collected by :Jack Luxor
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The Ratio That Predicted The 2001 And 2008 Stock Market Crashes Is Again Flashing Red
The co-movement of the stock market and the money supply to saving ratio has been obvious especially in recent decades. Enter the money supply to saving ratio (MS/S), a ratio based on an insight F.A. This should be worrying for stock market investors since stocks crashed following the peaks in the money supply to saving ratio in '01 and '08. As for the denominator in the ratio (saving), people will increase the proportion of income saved when uncertainty increases. The table below depicts the annualised price changes in the Russell 3000 stock market index for four different time periods following the 2001 and 2008 peaks in the MS/S ratio.
CHARLES LANE, BYLINE: The stock market is overvalued by conventional measures. He says an overvalued S&P is justified because the chance for recession right now is slim to none. REBECCA PATTERSON: What's another good water analogy - choppy waters, deep waters, boiling waters. But some are skeptical that Trump can deliver and think the market is overvalued. (SOUNDBITE OF THE MEMORY BAND SONG, "WHEN I WAS ON HORSEBACK") Transcript provided by NPR, Copyright NPR.
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collected by :Jack Luxor
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