True Money Supply Growth Slowing Dramatically

07/29/10 -

• “True Money” a/k/a “Austrian Money” YoY 3-month moving average supply growth has slowed dramatically to 3.0%, as of June 30^th from over 14%.  Forward 12-month small-cap returns typically struggle i.e. lose money, when money growth slows sharply from over 12%.
• When “True Money” 3-month moving average supply growth falls below 2% forward 12-month small-caps returns typically have been sharply negative.