The Nasdaq 100 to M2 money supply ratio just hit uncharted territory at 0.027—marking a significant shift in how equity valuations are stacking up against the broader money supply landscape.

Think about what's happened since the 2022 bear market trough: The ratio has more than doubled. Meanwhile, the Nasdaq 100 has surged 141%, but here's the kicker—M2 money supply has only expanded 5% in that same window. That disconnect tells you something important about the current market dynamic.

The ratio itself is now running 42% higher than it was. This divergence between equity strength and monetary expansion creates an interesting puzzle for investors tracking market fundamentals and potential valuation extremes. Whether this signals euphoria, justified repricing, or a setup worth monitoring depends on your view of where we're headed.