Nedbank strategists Mehul and Neels write some exciting stuff and like me, they don't confuse fundamentals with liquidity. They wrote in a strategy note:
There is a strong relationship between the change in global dollarNSE -0.40 % liquidity (M1) and the performance of the global stock market -- a correlation of 76 per cent.
• Global dollar liquidity leads global stock markets by an average of eight months.
• If there is no boost to global dollar liquidity, we expect this relationship to hold. As a result, the risk of further downside potential for stock markets across the world would remain intact.