This article discusses the two-year anniversary of the current bull market on Wall Street and highlights the importance of historical data in predicting stock market corrections and bear markets. One specific metric that is causing concern is the decline in the U.S. M2 money supply, which has historically correlated with economic downturns. The article provides a historical analysis of M2 money supply declines and their correlation with U.S. depressions and high unemployment rates.
Despite the concerning data points, the article also emphasizes the importance of time in the market and how economic cycles are inevitable. It discusses the historical lengths of bear and bull markets in the S&P 500, highlighting the long-term growth potential of the stock market.
Overall, the article suggests that while short-term market fluctuations may be unpredictable, long-term investors have historically been rewarded for staying invested in the market. It encourages investors to focus on the long-term growth potential of the stock market and not be swayed by short-term fluctuations.