European Capital Partners - Daily Instagraph: When bad news become good news for investors Discover this fund | European Capital Partners
Asset management and fund structuring boutique

Daily Instagraph: When bad news become good news for investors

Oct 03, 2022

As the new last quarter 2022 is starting and investors are licking their wounds, Mike Wilson, chief US equity strategist and CIO at Morgan Stanley, provided the below graph reminding us of the relationship between the US stock markets and global money supply, measured by M2. The latter is dependant of the future monetary approach of the Fed. More tightening would mean more pain ahead. Alternatively, a Fed pivot, that could be the result of a difficult earning season and deteriorating economic conditions, could lead to a rally in the S&P 500.  This is when bad economic news actually lead to good news for investors.

Return to overview
instagraph