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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
US
- Investors' concern over equities' valuation has been rising in recent weeks as DM central banks preparing for tapering/hiking rates.
- In the past 18 months, the significant increase in global liquidity has been one of the main drivers of the spectacular recovery in global equities, and especially the US growth stocks.
- The chart below shows how the mega-cap growth stocks (represented by the FANG+ index) have been strongly co-moving with global liquidity, which we compute as the total assets of the G4 central banks (Fed, ECB, BoJ, PBoC), in the past 5 years.
- Hence, momentum on risky assets could start to fade as Fed starts to tightening policy; investors are now pricing up to 4 rate hikes for this year.
- Can growth stocks continue to reach new highs 'without liquidity'?
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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