Marc Faber or Jim Rogers pointed out that even though the money supply growth has been throttled by quantitative tightening, money is not tight as demonstrated by stock market performace and credit spreads. The "liquidity reservoir" you bring up--reverse repos or some similar phrase describing a phenomenon I haven't bothered to understand--is running dry, with rough riding ahead. Home building is slowing, which is another barometer of liquidity, with home builder stocks looking like they might have topped. It will be interesting to watch home builders when the Fed starts its long looked for rate cutting campaign to reelect Joe Biden. I think home builders and stock bulls may be disappointed. (I've a small short of home builders).
Marc Faber or Jim Rogers pointed out that even though the money supply growth has been throttled by quantitative tightening, money is not tight as demonstrated by stock market performace and credit spreads. The "liquidity reservoir" you bring up--reverse repos or some similar phrase describing a phenomenon I haven't bothered to understand--is running dry, with rough riding ahead. Home building is slowing, which is another barometer of liquidity, with home builder stocks looking like they might have topped. It will be interesting to watch home builders when the Fed starts its long looked for rate cutting campaign to reelect Joe Biden. I think home builders and stock bulls may be disappointed. (I've a small short of home builders).