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

Returns - G7 + China Free Liquidity and MSCI ACWI (Leading Indicator)