U.S. Money Supply Has Made History Twice in the Last 3 Years -- Including a First Since the Great Depression -- and It Foreshadows a Wild Ride for Stocks in 2026

Core Insights - Wall Street is experiencing a strong year with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite up by 13%, 15%, and 19% respectively as of December 18 [2] - The upcoming year may see significant volatility influenced by the artificial intelligence revolution, quantum computing, and the Federal Reserve's rate-easing cycle [3] Money Supply Analysis - U.S. M2 money supply has shown unprecedented changes over the past three years, with a notable decline in 2023 reminiscent of the Great Depression [9] - M2 includes various forms of money such as savings accounts and money market accounts, indicating a broader measure of money available in the economy compared to M1 [6][7] - Historical trends suggest that a volatile stock market may be anticipated in the new year based on the patterns of M2 money supply [5][9]