Yet another bullish money supply report has been released by the Fed this evening.
The preliminary December 13th measure stood at $8.829 trillion. Annualized M2 growth over the past 13 weeks was 6.8% vs. annualized growth of 5.7% and 3.2% for the past 26 and 52 weeks. All figures are pointing to an acceleration of M2.
The easy money has already been made shorting Treasuries, although downside risk remains. These numbers also bolster my believe that GDP growth for 2011 will accelerate, taking corporate profitability along with it. With the S&P up 37% over the past six months, investors may give pause to driving that index to new heights. But the S&P remains fundamentally undervalued, given the prospects for year-ahead earnings growth.
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