One Minute Economics: The Stock to Flow Ratio Explained in One Minute: From Gold/Silver... to Bitcoin/Crypocurrencies?
The stock to flow ratio tends to be quite popular for some assets (from gold and silver to, believe it or not, bitcoin and cryptocurrencies) and less so for others.
The name may sound fairly complex but at the end of the day, wrapping your head around the stock to flow ratio isn't all that complicated, especially if you've watched our video which explains what stocks and flows actually are.
In a nutshell, the stock to flow ratio has been explained in approximately one minute through this video in a way which makes it clear that while it isn't the best thing since sliced bread in terms of indicators, including it in your arsenal would be wise.
A lot of times, analysts refer to the stock to flow ratio in a misleading manner so as to make one asset or another seem more attractive. Other times, it's simply included in various reports and people simply skip the section(s) in question.
Whatever the case may be, there are quite a few situations in which meaningfully knowing what the stock to flow ratio is makes the difference between being manipulated and knowing how to call out manipulators.
All things considered, I genuinely hope you'll agree that investing a minute of your time to understand the stock to flow ratio in a way which enables you to never fall for traps related to this metric again was a smart investment of time on your part :)
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