Tag Archives: liquidity

While ETFs offer numerous advantages over traditional actively-managed mutual funds and individual stocks - near total transparency, intraday trading, and a (generally) more straightforward tax situation - they aren’t foolproof, and there are plenty of opportunities to make mistakes while investing in ETFs. Words: 1991

Injecting massive amounts of liquidity into the banking system can spur dramatic economic growth if that liquidity is used. On the other hand, if public perception is negative and fearful, that liquidity remains untapped and no growth occurs. We are in a new earnings season and for the most part - based on lowered expectations - the numbers are looking OK so what should we expect based on these modestly improving numbers? Words: 2176

The growth in liquidity in global systems has become staggering...[reaching] a whopping $15 trillion - and rising - from the world's eight largest central banks [alone as shown in the chart below.]...[That's equal to almost] one-third of world equity values...which means that central banks are creating another bubble...No wonder the stock market is rising. [With so] much liquidity,...and with interest rates so low, there is no place to go but "risk on" assets. [That being said,] investors need to know how to capitalize on this short term phenomenon and how to prepare for the inevitable burst. [Let me explain further.] Words: 489

This may be one of the best books you could possibly read to protect what you have and be prepared for the next time buy and hold will make this game a whole lot easier. Words: 1440