Liquidity-driven Markets

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A Classic Liquidity-Driven Market

 

This is a ‘classic’ liquidity-driven market, as 2019 showed. Central Bank quantitative-easing, led by the US, and set against a relatively low exposure to safe assets proved to be the two things that really mattered. Looking into 2020, it may be a year of two distinct halves. Central Banks should continue to ease, at least, for some months more, while, according to our latest data, investors still remain too conservatively positioned in safe assets. Equities, particularly cyclicals, could do well again, and the rally looks set to broaden out beyond the US and other major markets.

 

 

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