05-18-2013, 01:45 AM
Thanks. I see from that graph of M2 and GDP that both are rising but the M2 rise has been consistent for a decade. Also, with the exception of the recession's GDP stepdown, the two have run in parallel. Overall, the author certainly makes an excellent case for continued investment in equities absent something big like a complete European collapse.
On that matter my rose colored glasses tell me the Europeans have learned...or are quickly learning...austerity and tight money is the problem and not the solution. That in turn suggests Europe is getting ready to turn the corner and get back to growth...a good thing for American equities in the near future at least. Japan evidently has already done so.
Recent rise recoveries in my couple of building stocks suggest the market may also be happy with this thesis.
On that matter my rose colored glasses tell me the Europeans have learned...or are quickly learning...austerity and tight money is the problem and not the solution. That in turn suggests Europe is getting ready to turn the corner and get back to growth...a good thing for American equities in the near future at least. Japan evidently has already done so.
Recent rise recoveries in my couple of building stocks suggest the market may also be happy with this thesis.