Stock Investing - The M1 And M2 Money Supply

The money supply is a way for investors to assess the market. You see, stock investing is not just about real companies. It also has more than reading a chart formations and patterns. It's also about getting the economy and strobe know how other macroeconomic forces that monetary policy affects financial markets. This is much more than just trying to find good stocks to invest in this is really starting to understand how the economy is fairing as a whole.

Many investors and analysts closely watch the money supply. This is because there may be a leading indicator of inflation, which is not good when it happens too fast. Essentially, when money supply exceeds the supply of goods and services, you can expect inflation. This is because more money is to buy things. While ordinary people begin to charge more for their goods and services.