U.S. Excess Liquidity (M2 Minus Nominal GDP) and S&P 500 P/E Ratio (Leading Indicator) U.S. excess liquidity (M2 minus nominal GDP) tends to lead the S&P 500 P/E ratio by 6 months. Image: Nordea and Macrobond
U.S. Market Liquidity – 3-Day Rolling E-mini Future Median Top-of-Book Depth and Width U.S. market liquidity is improving. Image: Goldman Sachs Global Investment Research
VIX vs. Liquidity (S&P 500 Futures Depth) Should investors expect the market depth to increase, as VIX and liquidity are highly negatively correlated? Image: J.P. Morgan
MSCI World YoY vs. VP Global Excess Liquidity (Leading Indicator) Global excess liquidity tends to lead the MSCI World Index by 12 months. Image: Variant Perception Research
Big Tech Stocks – Central Bank Liquidity and Market Capitalization of Apple, Amazon, Facebook, Google, Microsoft, Netflix and Tesla Central bank liquidity tends to push big tech stocks higher. Image: BofA Global Research
Returns – G7 + China Free Liquidity and MSCI ACWI (Leading Indicator) Global free liquidity continues to rise. When global free liquidity is above 10%, equity markets tend to perform well: the average next 12-month return is 23.4% with a hit ratio of 100% since 2009. Image: BofA Global Research
Central Bank Liquidity and the Market Capitalization of Tech Stocks Central bank liquidity tends to push tech stocks higher. Image: BofA Global Investment Strategy
U.S. 10Y-2Y Yield Curve vs. U.S. Excess Liquidity (Leading Indicator) U.S. excess liquidity tends to lead the U.S. 10Y-2Y yield curve by 9 months. Image: Variant Perception Research
Single Stock Liquidity Single stock liquidity is improving since March, but remains below average levels. Image: Goldman Sachs
Excess Liquidity and S&P 500 Performance Is the relationship between excess liquidity and S&P 500 performance fading? Image: Deutsche Bank