#1214 Darius Dale | Central Banks Are Secretly Controlling Stock Prices?!
Jun 21, 2023
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Darius Dale, founder & CEO of 42Macro, discusses global liquidity and the impact of central banks on stock prices. They explore the recovery process of global liquidity, updates on Eurozone and Japan's liquidity cycles, and factors influencing a potential recession.
Central banks' influence on global liquidity affects asset prices, including Bitcoin and US equities.
Differences between public and private sector liquidity and the ability of central banks to control overall liquidity and asset markets.
Deep dives
Global Liquidity Proxy and Recovery
The podcast discusses the global liquidity proxy and its recent recovery off the lows. They explain how the recovery process has stalled and is now moving in the wrong direction, which has affected asset prices, including Bitcoin and US equities.
Impulse and Trailing Month Momentum
The podcast explores the concept of impulse in global liquidity and how it is tracked through month momentum. They discuss the current flat and negative impulses in private sector liquidity and how it mirrors the economic trends. Additionally, they highlight the differences between public sector and private sector liquidity and explain how central banks can influence overall liquidity and asset markets.
Liquidity in China, US, Eurozone, and Japan
The episode provides insights into the liquidity conditions in different regions. It reveals that Chinese liquidity is expected to improve due to recent measures taken by the People's Bank of China. However, liquidity in the US and the Eurozone is likely to worsen in the coming months. The podcast also mentions the potential negative impact of changes in Japan's yield curve control program on global liquidity.
Darius Dale is the founder & CEO of 42Macro, one of the best research shops in all of Wall Street. In this conversation, we discuss global liquidity, we talk about which of the central banks are pushing liquidity up, and which of the central banks are driving liquidity out of the system. The global liquidity is one of the most important inputs to understanding asset prices, and Darius does a great job of breaking that down.
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Pomp writes a daily letter to over 235,000+ investors about business, technology, and finance. He breaks down complex topics into easy-to-understand language while sharing opinions on various aspects of each industry. You can subscribe at https://pomp.substack.com/
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