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- 1 Michael Howell predicted a continuous hike in global liquidity, showcasing a positive sign for liquidity-sensitive assets.
- 2 Gold, stocks, and cryptocurrencies are expected to represent positive influences on liquidity.
Michael Howell, the founder and CEO of CrossBorder Capital shed light on the economic landscape and its effects on liquidity-sensitive assets like cryptocurrencies, gold, and stocks. According to him, the gradual rise in global liquidity will positively influence liquidity-sensitive assets.
What Does Michael Howell’s Prediction Say?
Michael Howell was Head of Research for Baring Securities and Research Director of Solomon Brothers and holds a strong grip on understanding international finance and economics.
He analyzed the global liquidity trends and their influences on the market with outstanding analysis skills. The current macroeconomic landscape is continuously upsurging in global liquidity and is expected to have a positive influence on crypto, gold, and stocks.
According to Howell’s analysis, despite of decline in last year’s balance sheet, the Federal Reserve is injecting liquidity into markets. Fed liquidity increased by 12 to 15%, emerging as a part of the long-term way of monetary inflation.
Furthermore, The Bank Term Funding Program (BTFP) and Reserve Repo facility are the main contributors to the Fed Liquidity rise. In addition, the liquidity is expected to rise further.
However, the US Treasury’s decision to mitigate the debt issuance influenced the private sector, especially the banking sector. A decline is recorded in the private sector’s liquidity requirements to consider government papers, showcasing a calm phase of the global market.
Additionally, the movement of the market from the rebound phase to the calm phase is expected to be a favorable environment for high-beta securities and the financial industry, especially for the crypto market.
Cryptocurrency is much more popular among young investors and might be a preferred wall against monetary inflation. If showcases favorable results, cryptocurrency can be a priority choice of young investors soon.
In addition to this, CrossBorder Capital also tweeted about the rising liquidity and the issue of 5% US bond yields on January 22, 2024. According to CrossBorder Capital, the Fed Policy rates may decline and the US economy may avoid recession, the US treasury yields are all set to rise towards 5% of US bond yields.
The Current Performance of Liquidity-Sensitive Assets
According to CoinMarketCap, the 24-hour volume of the cryptocurrency market is over $37.68 Billion, a hike of 13.25%. Also, the global crypto market cap is around $1.52 Trillion, a decline of 4.89% in the past 24 hours.
CrossBorder Capital is a London-based independent fund management company introduced by Michael Howell in 1996. The company is FCA-regulated and manages over $1 Billion of assets. Also, CrossBorder mainly indulges in asset allocation, analysis, and monitoring of global financial environments.
Disclaimer
This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
