Rising M2 boosts risk assets?
Rising M2 liquidity is key for risk assets, per @bhavtweetss, tracking US Fed and China credit trends [https://x.com/i/status/2031190609390961001].
M2, a measure of the money supply that includes cash, checking deposits, and easily convertible near money, can indicate future economic activity. Increases in M2 liquidity often precede rallies in risk assets like stocks and crypto. The Federal Reserve's monetary policy significantly impacts M2. For example, quantitative easing (QE) can expand the money supply, while quantitative tightening (QT) can contract it. China's credit trends also play a role, especially given its status as a major global economy. Changes in Chinese lending and economic stimulus can influence global liquidity conditions.
