Summary

Michael Howell outlined his view for the next two years with strengthened correlation between global liquidity and aggregate wealth. Projections suggest an 8% to 10% expansion in liquidity, with a long-term cycle index indicating a rebound phase until late 2025. This unfolds through four market conditions: turbulence, rebound, calm, and speculation. Michael favours equities and credit during the rebound. He anticipates low inflation and rising global liquidity as key drivers for equity markets. Central banks, including the Fed, are expected to ease policies, while China is implementing liquidity injections to stimulate its economy.

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