Global Liquidity Revisited

Published on
February 7th, 2020
Duration
28 minutes

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27

Global Liquidity Revisited

The Expert View ·
Featuring Michael Howell

Published on: February 7th, 2020 • Duration: 28 minutes

Mike Howell, managing director at CrossBorder Capital, breaks down the mechanics of the adage "money moves markets" in this deep dive into global liquidity, asset prices, and market cycles. Howell examines the role that the Fed and other global central banks have played in the rise of the current liquidity-driven bull market through the lens of current and historical data. He then breaks down the implications of his thesis by asset class and geography, including his forward outlook for major asset markets. Filmed on January 22, 2020 in London.

Comments

Transcript

Chapters

  1. 00:01:40
    Why does liquidity matter?
  2. 00:02:10
    What happened in Q4 2019?
  3. 00:02:48
    How large was that cash injection on a relative basis?
  4. 00:03:34
    What was the global impact from the Fed action?
  5. 00:04:23
    What’s happening at other global central banks now?
  6. 00:05:34
    Are these just Chinese Lunar New Year effects?
  7. 00:06:12
    What are the likely impacts of the latest influx of liquidity?
  8. 00:08:30
    What historical period does this moment most resemble?
  9. 00:11:34
    What region has the most upside right now?
  10. 00:12:53
    What currencies do you think will benefit?
  11. 00:13:32
    Will the Fed withdraw liquidity if markets rally?
  12. 00:17:12
    How can central banks exit without blowing up the system?
  13. 00:18:41
    What’s your outlook for the 10 Year U.S. Treasury?
  14. 00:20:52
    Is this a precursor to additional rounds of QE?
  15. 00:22:26
    What happens if European yields rise faster than GDP grows?
  16. 00:23:09
    How might investors trade your thesis?
  17. 00:24:47
    What are your final takeaways?

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