Answering questions regarding the stimulus’ effect on the markets with Wealth E&P
March 15, 2021
Welcome to Wealth Enhancement & Preservation’s Market Minute, where we get to update you on everything that happened in the markets this past week.
It was a fabulous week this week, with the major indices up anywhere from about 2.5% to 3.5%.
Our All-Weather score remained very high at 40 out of 40; we aggregate about 80 different indicators to come up with that score, so we're in a very aggressive position in capturing the maximum opportunity that we can.
A lot of people have asked what is causing the market to go up when there are all these questions out there, and I've been talking for a while about the money supply and all the stimulus money added to the system.
Historically, money supply, or M2, grows about 5% to 6% per year. You can see, since COVID, it jumped about 25% to 26% with a big jump. This is before this week’s $1.9 trillion stimulus package, and as we know, all that money has to go somewhere. Some of the money is going into the market and some to spending, which all helps boost the economy.
We remain optimistic, and until that changes, we will continue to be aggressive. If you have any questions for us about the financial markets, please feel free to reach out. Otherwise, stay tuned for our next Market Minute next week!
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