The Dynamics of Global Liquidity and Cycles

He presents evidence that liquidity tends to lead market movements by a window of three to six months. This insight suggests that tracking global liquidity can offer valuable foresight into potential market behavior, enabling investors to make more informed decisions.

A central theme in Howell’s analysis is the assertion that liquidity flows have become crucial in understanding the modern financial landscape. In recent years, particularly since the global financial crisis, the nature of capital investment has evolved. Interest rates, which historically served as a critical indicator of capital allocation, have b... See more