Yahoo Finance: “There is an unusually high amount of cash floating around, a ‘reliable’ economic signal”By admin_45 in IN THE NEWS
Excerpt from Yahoo Finance quoting DataTrek's Nick Colas:
.... "The amount of cash in circulation in the U.S. has spiked sharply, an unusual but reliable indicator that the economy is at a bottom.
The spike has an “uncanny” similarity to the cash spike in 1999, DataTrek's Nicholas Colas, a former hedge fund manager, wrote in a note.
A look at physical currency and coin supply changes shows this similarity in stark terms, with enormous spikes during those two moments. On Jan. 3, 2000, the cash supply was 15.3% higher than a year earlier. In late December 2020, cash supply was also 15.3% higher than the year before.
“Notably, 2020’s growth in currency in circulation is not a single sharp spike like 2000, but rather a long period (7 months) of +10 percent growth,” Colas wrote"....
Read the full article here on Yahoo Finance!