Liquidity Runs The World

Introduction

Since we published our “Searching for Market Bottoms” report, things have started to accelerate. We outlined a number of factors we were watching to give us the conviction that a market bottom is in. We argued several of these factors already checked their proverbial boxes to signal the worst is behind us. The only major one left standing – and the one that’s arguably most important – is the signal of a macro trend reversal.

Many are trying to speculate as to when the Fed – and other major central banks – will be forced to abandon their tighter policy regimes, but until something breaks – whether it be inflation or a crucial part of the financial system – we’re unlikely to see a material change in policy (yet).

We argued in our last report that, while we couldn’t say definitively that the bottom was in, today’s market was offering “flash sales for those looking to accumulate long term positi