Where does all liquidity growth and then recent contraction leave us?

September 11, 2023 Sebastien D'Hondt

🚰 Liquidity everywhere but not a Drop to Drink

The money supply growth numbers aren’t as terrifying as they first look, strong growth since the great financial crisis and now contraction. But it’s beyond denying that over history, large swings in liquidity have driven some major market accidents, and there are other factors that could dry up the market. Bank market, real estate market, funds market,… Extremely difficult to spot ahead of occurrence. Put very simply — we do need to care about the plumbing, and that in itself is cause for vigilance, ie Liquidity of your company.

❓What are your thoughts?