Post by steadyeddy on Jun 28, 2023 11:55:54 GMT
This FT article predicts a tailwind for risk assets for next several years. It normally is behind a paywall but I was able to browse (not sure how).
I am pasting a few excerpts here:
"Our estimates show that the liquidity cycle bottomed during October 2022, in the wake of former UK prime minister Liz Truss’s “mini” Budget debacle, and looks set to trend higher over the next few years. Investors should therefore expect a continuing tail wind from global liquidity instead of last year’s severe headwinds. This should prove good for stocks, but less positive for bond investors."
"The integrity of banks and sovereign bond markets are sacrosanct in modern finance. Led by the US Federal Reserve, central banks have just injected substantial cash into money markets over recent months helping to bailout flaky banks. But in coming years they will probably have to bailout debt-burdened governments, too. In short, markets need ever more central bank liquidity for financial stability and governments will need it even more for fiscal stability. In a world of excessive debt, large central bank balance sheets are a necessity. So, forget QT, quantitative easing is coming back. The pool of global liquidity — which we estimate to be about $170bn — is not going to shrink significantly any time soon."
Now you all have read the memo
so go invest every penny you got in stocks 
I am pasting a few excerpts here:
"Our estimates show that the liquidity cycle bottomed during October 2022, in the wake of former UK prime minister Liz Truss’s “mini” Budget debacle, and looks set to trend higher over the next few years. Investors should therefore expect a continuing tail wind from global liquidity instead of last year’s severe headwinds. This should prove good for stocks, but less positive for bond investors."
"The integrity of banks and sovereign bond markets are sacrosanct in modern finance. Led by the US Federal Reserve, central banks have just injected substantial cash into money markets over recent months helping to bailout flaky banks. But in coming years they will probably have to bailout debt-burdened governments, too. In short, markets need ever more central bank liquidity for financial stability and governments will need it even more for fiscal stability. In a world of excessive debt, large central bank balance sheets are a necessity. So, forget QT, quantitative easing is coming back. The pool of global liquidity — which we estimate to be about $170bn — is not going to shrink significantly any time soon."
Now you all have read the memo
so go invest every penny you got in stocks 
