Thursday, March 10, 2016

Global Liquidity Tracker

BofA Merrill Lynch's Global Liquidity Tracker, see below, fell into negative territory right as the S&P 500 peaked in 2000 and again in 2007.
 
Given that it measures liquidity conditions around the globe, it also dipped into negative territory in 2011-2012 during the height of the European debt crisis.
 
The latest data point shows that global liquidity has accelerated further into negative territory and now rests at levels we haven't seen since 2008.