Liquidity Premium and IG Bonds The spread between low liquid and high liquid IG bonds is widening, despite the rally and the belief of an improvement in US-China trade tensions. Image: Goldman Sachs Global Investment Research
Liquidity Policies and Central Bank Balance Sheets Central bank balance sheets are rising again. Extreme liquidity policies keep BofAML bullish. Image: BofA Merrill Lynch
Emerging Markets and Liquidity Cycles This chart shows that investing in emerging markets also requires an understanding of global liquidity cycles. Image: Fidelity Investments
U.S. Dollar and Global Liquidity In 2018, global liquidity fell at the fastest rate since the global financial crisis. This chart suggests that a reversal in global liquidity lies ahead. Image: Swedbank Research
U.S. Excess Liquidity Leads U.S. PMI This chart suggests that U.S. excess liquidity leads U.S. PMI by 12 months. U.S. PMI could bounce back in 2020. Image: Exane BNP Paribas
U.S. Excess Liquidity Growth Leads S&P 500 Returns This chart suggests that M2 money supply to nominal GDP ratio leads S&P 500 returns by one year. Is the S&P 500 vulnerable to a drop, followed by a recovery? Image: Oxford Economics, Macrobond
Liquidity Premium: Investment Grade vs. High Yield Bonds The chart shows that the premium provided by illiquid IG and HY bonds has been drifting wider. Image: Goldman Sachs Global Investment Research
Liquidity in U.S. Equity Futures Liquidity in U.S. equity futures collapsed in early 2018. It has remained at very low levels. The lack of liquidity could lead to violent market moves. Image: Deutsche Bank
S&P 500 Index vs. Global M1 Liquidity Another good correlation between the S&P 500 Index and global M1 liquidity, while the Fed plans to stop quantitative tightening. The money supply M1 is the amount of effective money in the economy. Image: Nordea and Macrobond
International Liquidity by Country – Total Reserves Excluding Gold, U.S. Dollars USA holds $115 billion and China holds over $3 trillion in reserves. Image: howmuch.net