Latest Global Liquidity & Capital Flow Data - November Update

Our latest Global Liquidity Index (GLI) hit 55.0 (range 0-100) at end-October2013. This above average score is being depressed by still very weak Emetging Market liquidity. Without this drag and excluding soft cross-border flows Developed Market liquidity hit an equivalent GLI of 76.2. The two key stories from our data are (1) DM liquidity still outpaces EM, and (2) Central Bank liquidity injections are being eclipsed by robust private sector flows. Indeed, as our latest research shows, this is the very reason why gold is sliding. We stand at a major inflection point in markets where market leadership is set to change, Volatility looks too low and cyclicals have underperformed too much over the past few years. Tapering will affect psychology more than it affects real economies.