Three Reasons for Economic Growth and Higher Equity Prices
February 19, 2021 at 07:00 AM EST
There are three broad reasons why our outlook for U.S. economic growth and the equity market continues to brighten. First, the U.S. Federal Reserve’s (the Fed) massive monetary support keeps increasing liquidity in the financial system. As exhibit 1 shows, M1 (currency, checking accounts, etc.) is...