Everyone gives a reason why the market moves a particular direction. With the US market correcting, we read about all the reasons: weak global economic data, trade wars, inverted yield curves, etc. Just using technical analysis, it became obvious the market was looking for a reason to go down. See my post on “Correction Coming“. This correction will run its coarse. I believe it will be another buying opportunity.
The Federal Reserve is now considering using its new “tool” established in 2016 called counter-cyclical capital buffer. It also established a real-time payment and settlement service called FedNow. I honestly do not know what to make of these programs and it is hard to know what the fed is up to. Jerome Powell is not very good at “fed talk”.
The excess reserves keep declining and the money supply has been growing through the summer. This is very unusual.
If the M2 money supply growth goes to double digits, this will be very bullish for stocks and real estate.