Global liquidity has peaked and is now declining, according to Mike Howell, founder and managing director of CrossBorder Capital. This expert anticipates an era of greater volatility and recommends investors adopt a defensive stance. Strong global economic growth is pulling liquidity from the financial system into the real economy. Interest rates are expected to continue rising, further tightening liquidity. Howell’s research is based on the global liquidity cycle concept, roughly five-year periods where the quantity and quality of money fluctuate.
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