The rapid growth of US money supply may shift stock market focus to smaller, undervalued stocks.

The accelerating growth of the U.S. money supply may signal a shift in the stock market, favoring undervalued smaller stocks over large companies like Apple and Microsoft, which have dominated returns. Recent data shows M2 money supply growth reached 2% in August, aided by Federal Reserve interest rate cuts that lower borrowing costs. This trend could lead to smaller companies outperforming, making equal-weight index funds a strategic investment option.