Latest Global Liquidity October Update

by Michael J. Howell15. October 2014 17:12
There are few bright spots in the latest GLI (Global Liquidity Index) data which shows a fall in the month to end-September 2014 from an index of 48.0 ('normal' range 0-100) to 45.0. Liquidity conditions are sub-par and this means three things (1) flattening bond yield curves and strong bonds; (2) increasing market volatility and (3) softer economies in the future. The main causes of weak liquidity are that Central Banks are not pumping sufficient liquidity; the private sector is suffering poor cash flow growth and that liquidity in many international markets is negatively leveraged to the strong US dollar. This is not yet 2007/08 again but it looks to us very much lik 1997/98!


Comments are closed
Copyright © - All rights reserved