Stocks now outweigh the money supply by three to one, which only works as long as liquidity keeps pretending it’s infinite. When cash tightens even a little, there’s nothing underneath that valuation but hope.
That's when people want to be in the world reserve currency but even that has its limits…. And we are about there!
— Fibonacci Investing⚡️ (@FibonacciInves1) January 6, 2026
In 2025, U.S. stock market capitalization rose to 305% of the M2 money supply—the highest level since the Dot-Com Bubble. The elevated ratio highlights the outsized role of equities in absorbing available liquidity, signaling strong investor demand but also raising concerns over potential economic and financial imbalances.