the near-US$185 trillion pool of Global Liquidity, the aggregated amount of international cash savings and credits. This is two-thirds bigger than World GDP, and because it includes elements of shadow banking and repo market activities, it exceeds traditional money supply metrics by some US$70 trillion. Global Liquidity is US$12 trillion higher so

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Global Liquidity is up an impressive near-40% since 2019 and by more than a whopping 125% since the 2008 GFC. To add context, the IMF estimates that World GDP across the major economies is barely 50% higher in nominal terms and a lesser 30% up in real terms.

So it’s little surprise that this excess liquidity has flooded into financial assets. Since

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It also follows, as noted, that duration and liquidity should typically correlate together: more liquidity forces investors into longer duration investments. Another irony in this story is that technology stocks are long duration i.e. high P/E investments and largely outside the ‘value’ framework. However, they are exactly the assets that gain most... See more

total global liquidity has historically risen and

fallen in these predictable tides of around 5 years this cycle is determined by the average five to six year debt maturity profile that you've spoken about the lows of each cycle nearly always coincide as you've said with some kind of financial crisis and central banks always step in to provide more

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