You have been emphasising the importance of liquidity as a determinant of equity market performance. You have asked, “What is the source of liquidity to support future market gains?”.
Lawrence Fuller, publisher of “The Portfolio Architect” has provided a thorough analysis of the present unwinding of global liquidity and equity performance. On Page 4 there is a diagram showing a direct correlation in January 2019. (see attached). I cannot locate the source of the liquidity data.
Yardeni Research Inc, January 2019 edition of its “Global Economic Briefing: Central Bank Balance Sheets” on Page 7 may be lagging but it only partially reflects the picture presented by Mr. Fuller.
Are you able to help in any way?
Thank you for the attached reports and this question which the whole world is asking. I have to say I find it gratifying more people are using my chart of total central bank assets. I first created the measure on July 10th 2014 and immediately wished I had included it in Crowd Money.Click HERE to subscribe to Fuller Treacy Money Back to top