The M2 Catch-Up

Here are up-to-date ratio charts, showing major cash indexes divided by the M2 money supply, which I believe is the only honest representation of equity values. Suffice it to say, they’re all toppy, to say the least.

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Dow Composite

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Russell 2000

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Dow Transportation

On top of this, the ratio of small caps to S&P 500 indicates that the small caps are in some serious trouble for years to come.

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