Investment demand is what it sounds like: demand for investment.
So...who’s demanding that investment? Businesses. They need you to invest in them so that they can expand, making both you and them money.
Some businesses might need computers and desks, while others need factory equipment and warehousing. Entities needing this kind of capital pay for your having invested in them in two primary ways: by writing debt to investors, i.e. selling them bonds (which are promises to pay back principal and then rent on that principal, i.e. interest, along the way), and selling equity to investors, i.e. a slice of ownership in that entity.
When investment demand is low, businesses aren’t currently in the business of expanding, but are either just trying to stay afloat, or are shrinking (which is generally bad for the economy and the stock market...especially in such a globally connected world).
When investment demand is high, it means businesses are doing the feel-good dance, because the economy is humming along swimmingly, allowing them to grow, which brings in more profits.
Related or Semi-related Video
Finance: What are M1, M2 and M3?3 Views
Finance allah shmoop what are m one m two and
m three Weren't those models of beamers are none None
And all right well maybe they're not james bond security
clearance things or the name of the cia soccer team
How about that M five m six and maybe not
okay and one two and three are just different measures
or gradations for how we count the money supply in
the economy Think of these m numbers is analog is
teo def con one is like get ready for nuclear
war and def con five is like you know well
all is well on ly the m numbers here relate
to liquidity e how closely those m numbers approximate the
easily immediately available cash in the economy So em one
reflects the most liquid number and just includes paper currency
like you know dolla dolla bills and callings and things
like checking accounts in banks where you can walk in
and in an hour or less get a load of
cash we'll em one represents a relatively small slice of
the total m number in the economy or about one
and a half trillion box And yes that's a lot
Of nickels but it's relatively small in the kissing twenty
trillion dollars u s economy em two adds to the
m one totals What's called near money like the money
market securities savings deposits longer duration deposits like six month
cds up to one hundred grand and stuff like that
well em to totals almost eight trillion box these days
And kind of make sense People sock away more money
in cds and short term paper than they would dollar
bills in your wallet Right And it's A big delineation
Why Well it can be converted to money I'ii converted
to m one quickly So that's what those cds are
m three is the biggest slice of pie like mohr
savings bigger volumes and longer term duration Commitment to making
that two percent a year whatever you make these days
So m three includes stuff like time deposits more than
one your grand at euro dollar deposits over a hundred
grand Other things that can take more than a day
roughly to be converted into cash So m three is
somewhat less liquid than him One and two Got it
Well as long as all that makes sense to you 00:02:14.758 --> [endTime] Then well you know all is well
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