TLDR · I posit “Net Liquidity” has correlated so well with equity levels since the pandemic started because it has effectively proxied a more root driver of equity valuations; the amount of zero-ish yielding bank deposits held by sophisticated folk who actively don’t want to hold them but in the aggregate cannot be rid of them (“hated deposits”).
John, stumbled upon this article. This is macro financial framework is rather new to me. But this is fascinating, and being a novice, I understood most of it. Well done, sir.
Brilliant. Thank you for this. This is a great extension of Hussman’s zero-interest hot potato concept.
Thank you for the kind words. They are very much appreciated.
This is fantastic. Thanks John!
John, stumbled upon this article. This is macro financial framework is rather new to me. But this is fascinating, and being a novice, I understood most of it. Well done, sir.