As I have said, I believe that liquidity flows determine asset price moves in the short and medium term.
I have quoted Stan Druckenmiller’s view on liquidity many times;
Earnings don’t move the overall market; it’s the Federal Reserve Board… focus on the central banks and focus on the movement of liquidity… most people in the market are looking for earnings and conventional measures. It’s liquidity that moves markets.
As I have been educating myself more on this I have discovered Michael Howell, CEO of CrossBorder Capital. I also follow CrossBorder Capital on Twitter.
They track liquidity and its flows along with the effect liquidity flows have on economies and markets.
In this interview on the Julia La Roche show, he discusses these themes and what he is expecting as liquidity begins to inflect positively after two years of contraction. Of particular interest are the comments on China’s recent liquidity injections and how they are intended to get the Chinese economy going after three years of lockdown.
You can check out the interview at this link it is episode #53.
I also recommend following them on Twitter https://twitter.com/crossbordercap.