Part 6/8:
Global liquidity is another crucial factor influencing market stability. Recent reports indicate that global liquidity has reached an all-time high of $177 trillion, leading to increased asset resilience even amidst negative headlines. This growth in liquidity typically paves the way for market positivity, and with central banks easing monetary policies, it serves as an optimistic indicator for investors.
The Consumer's Response
Consumer credit is expected to rise as a consequence of increased liquidity, providing further cash flow into the economy. This can lead to more spending on goods and services, reinforcing the positive cycle of growth in the consumer-driven sectors.