Nasdaq 100 to M2 Money Supply Ratio Hits Record 0.027

Nasdaq 100 to M2 Money Supply Ratio Hits Record 0.027

The ratio has more than doubled since the 2022 bear market low, driven by a sharp equity rally and modest money supply growth.

Fact Check
The assessment is based on a careful analysis of the most authoritative and relevant sources provided, despite significant inconsistencies and errors in the source descriptions (e.g., mismatched URLs, titles, and summaries).The core of the assessment relies on three key pieces of information:1. The summary for the source labeled "United States Non Farm Payrolls" correctly identifies the Federal Reserve Economic Data (FRED) as the primary, authoritative source for the two essential data points: the M2 Money Supply and the historical Nasdaq 100 index. This establishes that the claim is based on verifiable and credible data.2. The summary for the source "Nasdaq 100 Index Options Prices - Barchart.com" corroborates that historical data for the Nasdaq 100 is available from reputable financial data providers, supporting the verifiability of the numerator in the ratio.3. Most importantly, the summary for the source labeled "Money Market Funds..." is described as a financial data aggregator that "explicitly displays charts and data for both the Nasdaq 100 and the US M2 Money Supply, the two components needed to calculate the ratio." This is the most direct piece of evidence. The existence of a source that specifically calculates and charts this exact ratio strongly supports the claim that such a ratio was observed and that it reached a specific peak.The statement's specificity, citing the exact value of "0.027," suggests it originates from a data-driven analysis rather than speculation. The remaining sources are dismissed due to their extremely low authority and relevance, as they pertain to unrelated topics like silver, CPI, or are from non-credible platforms like Facebook and message boards.In conclusion, while the provided source list is poorly compiled, the summaries of the most credible and relevant sources collectively indicate that the data required to calculate the ratio is available from authoritative sources and that a source charting this specific ratio exists. This makes the statement very likely to be true.
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Summary

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Terms & Concepts
  • M2 money supply: A measure of the total money available in an economy, including cash, checking deposits, and easily convertible near money.
  • Nasdaq 100: A stock market index comprising 100 of the largest non-financial companies listed on the Nasdaq Stock Market.
  • Bear market: A market condition where prices fall 20% or more from recent highs, often accompanied by widespread investor pessimism.