US Money Supply

It's been 90 years since M2 money supply has contracted by at least 2%.
Who needs a theme park when you have Wall Street. Over the trailing two years, we've watched the ageless Dow Jones Industrial Average (^DJI), widely followed S&P 500 (^GSPC 0.12%), and growth-dominated Nasdaq Composite (^IXIC), roar to new all-time highs, plunge into a bear market, and regain their luster, once more. This short-term roller-coaster ride has new and tenured investors alike wondering what's next for Wall Street.

Although it's not an economic datapoint most investors would think of turning to for guidance, U.S. money supply may hold the answer as to what's next for stocks.

M2 money supply hasn't done this since the Great Depression
Though there are a few variations of money supply, most economists tend to focus on M1 and M2. The former takes into account cash and coins in circulation, as well as demand deposits in checking accounts and traveler's checks. In other words, money that's either in your hand or can be accessed very easily.

Meanwhile, M2 accounts for everything in M1 and adds savings accounts, money market funds, and certificates of deposit (CDs) below $100,000. It's money you have access to, but it takes a little extra effort to put this capital to work. It's M2 money supply that's raising eyebrows on Wall Street and making history.  READ MORE...

Bill Benefits Wealthy Americans

A retirement bill currently under negotiation in the Senate gives rich Americans a tax break by bringing forward the payment schedule to remain revenue-neutral within the 10-year budget window, but will ultimately add to the national deficit unless a future Congress raises taxes.

The Senate’s Enhancing American Retirement Now (EARN) Act raises the age at which taxpayers must start making withdrawals from 72 to 75, allowing them three extra years of tax-free growth.

Most Americans start living off their retirement accounts well before the age of 75, so the bumped-up age requirement really only affects the wealthy, who often use their retirement accounts as tax-sheltered investment vehicles rather than as savings to cover the cost of living in old age.

The bill throws another bone to rich taxpayers — and the Wall Street fund managers who look after their money — by allowing them to deposit an additional $10,000 a year into their retirement accounts beginning between the ages of 60 and 63. Setting aside an extra $10,000 a year is something most Americans can’t afford to do.  READ MORE...