Liquidity: The invisible tide driving global markets

CMC Markets
1 minute read
|3 Jul 2024
Lighthouse and waves

Ever wonder why markets continue to rise amid geopolitical issues and high inflation? The answer could lie in the shadowy waters of liquidity. As Michael Bogoevski explains, liquidity is a hidden force shaping the “upside down world” of markets today.

Liquidity has many meanings, but in one sense, it refers to the ease with which money moves globally through institutions like central banks, commercial banks, and into the broader economy. These liquidity flows have become highly correlated with market movements, influencing everything from stock prices to economic stability.

This video provides a comprehensive guide to liquidity, breaking down the essentials you need to understand this complex concept. We'll explore how liquidity shapes our financial world, offer practical ways for investors to monitor liquidity, and explain the critical correlation between liquidity and financial markets. Whether you're a seasoned investor or just curious about what makes markets tick, this video is your introduction to the lifeblood of global finance.