3min chapter

Forward Guidance cover image

The Great Liquidity Debate | Michael Howell & Andy Constan

Forward Guidance

CHAPTER

The Long-Term Relationship Between the Equity Market and the Bond Market

The equity market likes moderate and low inflation. What it does not like is high inflation and deflation. Inflation is much more likely to be volatile over the next decade or so, whereas liquidity will continue to trend higher for reasons I alluded to.

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