U.S. Money Supply Just Made History in More Ways Than One -- and It's Sending an Ominous Warning to Wall Street

Market Overview - The bulls have dominated Wall Street for nearly three years, with major indexes showing significant gains [1] - In 2025, the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite increased by 13%, 16%, and 20% respectively, achieving multiple record-closing highs [2] Economic Indicators - The U.S. money supply, particularly M2, is reaching historical levels, with M2 hitting an all-time high of $22.411 trillion in December 2025 [8] - M2's growth is traditionally seen as a positive sign for a bull market, as it indicates a growing economy requiring more capital for transactions [8] Concerns and Warnings - Despite the positive outlook, the expansion of M2 money supply has not kept pace with the tech-driven rally on Wall Street, raising concerns about sustainability [9] - The overwhelming optimism in the market, driven by artificial intelligence advancements and anticipated interest rate cuts, may not be sustainable in the long term [3]