Don’t Fight the Flows

June 28, 2023 | Jessica Noviskis, CFA, Associate Director of Alternatives

While not as commonly dissected as earnings and multiples, liquidity is a key driver of equity markets. An influx of liquidity set up both the tech and real estate bubbles, which burst as that capital dried up, leading to severe market corrections in the early 2000s and in 2008. The easy credit environment that followed the Global Financial Crisis facilitated one of the longest and strongest bull markets in U.S. history. An unprecedented amount of stimulus injected into the financial system amid the COVID pandemic led to the sharpest stock market upturn on record. And now in 2023, amid an increase in liquidity and despite heightened macro uncertainties, a hawkish Fed, and a banking crisis, the S&P 500 is up 14%¹ nearing the end of the second quarter while the CBOE Volatility Index (VIX) has retreated to below-average levels.

Read > Don’t Fight the Flows

¹Through June 27, 2023

 

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.

Jessica Noviskis, CFA
Associate Director of Alternatives

Get to Know Jessica

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.

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