A Look at US Equities Relative to Dollar Liquidity

The longer term trend is one that the liquidity environment will be worse, much worse than it has been over the past 10 years. I wanted to show a chart for you on US equities relative to dollar liquidity. That proxy gives a decent direction I'd say for equities and it points to a level around 3500 ish in the S&P 500 into next year. It's definitely one of the big, big factors liquidity looking at the central line of balance sheet. You can also just look at real interest rates themselves as a sort of a price measure. Then also looks at fundamentals as well look at earnings expectations and it's linked to growth overall.