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Weak Velocity of Money & High Savings Rate Save Stock Markets

May 5, 2020

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North America’s four major stock market indices, as shown in Table 1, all recorded strong recent month-to-month performances. They managed double-digit percentage gains from month-end closings in March to month-end closings in April. The appreciations ranged from a low of +10.5% for the Toronto Stock Exchange to a high of +15.5% for NASDAQ. In between were the Dow Jones Industrial, at +11.1%, and the S&P 500, at +12.6%.

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