The US stock market is witnessing a historic run: The MSCI USA Index's market cap relative to the US M2 money supply is up to a record 270%. This ratio is up +120 percentage points since 2022. This now surpasses the 2000 Dot-Com Bubble peak by ~40 percentage points, and the pre-2008 Financial Crisis high by ~75 percentage points. By comparison, the UK and France MSCI indexes relative to their M2 stand at ~60%, still below pre-pandemic highs. At the same time, Japan’s market cap to M2 is up to ~60%, the highest since the 1990s. The market has never run this far ahead of liquidity before.(The Kobeissi Letter)