Understanding Global Liquidity

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The ‘Great Containment’: Global Liquidity and Asset Rotation

 

A Primer on Why Global Liquidity Matters

 

This report argues that the P/E multiple approach to investing is inappropriate at the market level. We describe an alternative method that uses investor behaviour and the Global Liquidity cycle. We show that asset allocation between major asset classes has flat-lined since the 2008/09 GFC: the ‘Great Containment’. However, there is an ever-active allocation across national stock markets as investors flip between Europe, the US and Emerging Markets. 

 

 

 

See our latest published research, Global View: The ‘Great Containment’: Global Liquidity and Asset Rotation – 7th December 2023

 

For further information, please contact us at research@crossbordercapital.com 

 

 

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