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Liquidity Cycle At A Key Turning Point That Will Now Push Markets Higher? | Michael Howell

Wealthion - Be Financially Resilient

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Introduction

The liquidity cycle leads asset markets by somewhere between three and nine months, depending on the target asset you're talking about. The capital markets became accustomed to an ever rising tide of liquidity over the decade of rolling stimulus programs that followed the 2008 global financial crisis. After reaching its apex during the COVID rescue era, that liquidity suddenly dropped in 2022 and market prices fell accordingly. Now here in 2023, many analysts are warning of a further liquidity crunch as central banks continue to hike rates and reduce their balance sheets. But is there a different side to the liquidity story? Today's guest thinks so.

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