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📉 M2 – a seemingly dry index that has a strong impact on the financial market
Many people overlook M2, but for professional traders, this is the most daunting macro indicator when it changes direction.
📌 What is M2?
Simply put, it's the total cash + savings deposits + readily withdrawable funds. This measures the 'breathability' of money flow in the economy.
📈 When M2 increases:
• Abundant liquidity, money seeks high yields.
• Crypto and stocks surge due to 'cheap money' → widespread FOMO.
• Low interest rates → everyone can borrow, pushing asset prices up.
📌 What is M2?
Simply put, it's the total cash + savings deposits + readily withdrawable funds. This measures the 'breathability' of money flow in the economy.
📈 When M2 increases:
• Abundant liquidity, money seeks high yields.
• Crypto and stocks surge due to 'cheap money' → widespread FOMO.
• Low interest rates → everyone can borrow, pushing asset prices up.
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