Thoughtful Money with Adam Taggart Michael Howell: Peaking Liquidity Suggests A Flat To Down Year Ahead For Stocks
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Jan 23, 2025 
Michael Howell, the Founder and CEO of Crossborder Capital, dives into the intricate world of global liquidity and its sway over financial markets. He shares insights on the mixed economic landscape, highlighting growth in the US versus challenges in China. Howell emphasizes the cyclical nature of liquidity, warning of potential downturns ahead for stocks. He also discusses the implications of rising debt and Federal Reserve policies on asset classes and offers thoughts on gold's future in the market.
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Liquidity's Impact
- Rising net liquidity drove strong economic and market performance over the past two years.
- This liquidity is now peaking, suggesting a potential downturn.
Global Economic Outlook
- The US economy shows robust growth, while China faces a debt deflationary situation.
- Europe's economy, particularly Germany's, struggles due to China's weakness.
China's Liquidity Crisis
- China's tight liquidity contributes to its debt deflation issues, limiting its stimulus options.
- Protecting the yuan against a strong dollar necessitates this tight liquidity.
