The real liquidity keeps us invested…We measure real liquidity as the money supply plus equity and bond mutual funds and ETFs vs. Industrial Production growth rates. This measure looks at readily available money vs. what is being used for economic growth. Typically, coming out of recession there is a surge in real liquidity because the monetary and fiscal stimulus hasn’t yet re-entered the economy, and this occurrence is no different (Figure 1).
Sign up to access the rest of this content!
This content is not available to free users. Sign up for a paid account to access the rest of this content.