Money Manager Research: Money manager articles and resources to help you manage your wealth and retirement.

Gabriel F. Burczyk

Signs that might indicate a bottom

Posted by Gabriel F. Burczyk on 2/26/09 9:07 am

Investors are “…looking for signs that might indicate a bottom.” With the majority of the mainstream news negative, I have been watching certain data points that may be helpful for forecasting future positive US growth.

Growth of M2 is a nugget we should pay attention to as it may signal the way. M2 is the total of money in the system, which includes currency in circulation, checking accounts, saving accounts and money markets funds. This chart shows the increase of M2 going back to the ‘60s and the past result of growth in America’s Gross Domestic Product (GDP). Last time it spiked the US economy entered one of its best growth stages. I believe this might be a positive sign that better days lie ahead.

image

Looking for concrete signs, both positive and negative, will help us make better non-emotional decisions.

Read more on the money supply

  • Discuss (0)
  • Print

Comments

No comments have been posted for this entry.


Post a Comment

You must register and log in in order to post comments.



Log In

Forgot your password?


Important Disclosure Concerning WrapManager Blogs

Blogs found at this site have been created or supported by WrapManager. The information provided in a blog post prepared by WrapManager or an associated person of WrapManager is generally limited to financial and economic issues, but may include a discussion of general interest items. The views and opinions expressed on this blog are purely the blog authors, and not necessarily those of WrapManager, Inc. Certain blog posts include information pertaining to WrapManager’s investment advisory services and the products and services of unaffiliated money managers. Such information is provided for information purposes only. Accordingly, information provided in a blog should not be construed by any consumer and/or prospective client as a solicitation to effect or attempt to effect transactions in securities or the rendering of personalized investment advice. Any subsequent, direct communication by WrapManager with a prospective client shall be conducted by a representative of WrapManager. Moreover, no client or prospective client should assume content contained on the website serves as a substitute for personalized advice from WrapManager. Different types of investments involve varying degrees of risk, and there can be no assurance that any investment, portfolio or money manager referred to within the blog will be suitable for your individual situation and risk tolerance or will be profitable. WrapManager recommends that you retain a financial professional to provide you with specific guidance regarding your financial situation before investing. Investment in equity strategies involves substantial risk and has the potential for partial or complete loss of funds invested.

Although the information included in the WrapManager, Inc. website and blog has been obtained from sources WrapManager believes to be reliable, we do not guarantee its accuracy and information may be subject to change without notice. This website should not be regarded as a complete analysis of the subjects discussed. Information on this site should not be relied upon as a substitute for legal, tax or accounting advice by a professional in your local jurisdiction.

Comments made by third parties are subject to moderation by WrapManager and may not appear on this blog until they have been deemed appropriate for posting. Also, due to the volume of comments received, not all comments will be posted.

WrapManager does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party website linked to WrapManager's web site or incorporated within a blog post. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.

The associated persons of WrapManager are also securities agents with Prospera Financial Services, Inc., a registered broker/dealer, member FINRA/SIPC. Securities offered through Prospera Financial Services are cleared through First Clearing, LLC which is affiliated with Wells Fargo Corporation. WrapManager is not a related company of Prospera Financial Services, First Clearing or the Wells Fargo Corporation.