Cross-Asset Liquidity Strategist, CrossBorder Capital

Michael J. Howell

Cross-Asset Liquidity Strategist

Implementing Research Using Alt Data & AI

CrossBorder Capital

CrossBorder Capital is a London-based independent investment advisory firm. Founded in 1996, it exploits a gap in the investment arena by focusing on Central bank liquidity. 

It specialises in the monitoring and analysis of global liquidity flows - an important determinant of asset prices, from currencies through to bonds, equities and real estate.

CrossBorder Capital implements its investment strategy and currently manages over US$ 350m.


Cross Asset Strategy

<ul>
<li>
 Global Liquidity matters hugely for World financial markets. Although Fed Liquidity is slowing, there are compelling signs that liquidity is rising elsewhere</li>
<li>
 Foreign holdings of US dollars are expanding once again, as flow migrate towards Asia. Many policy makers are monetizing these inflows.</li>
<li>
 China’s PBoC  stepped up her liquidity injections, adding RMB 1 trillion to money markets through June. This should have a positive effect on the Chinese and World economies  </li>
</ul>



 Global Liquidity matters hugely for World financial markets. Although Fed Liquidity is slowing, there are compelling signs that liquidity is rising elsewhere

 Foreign holdings of US dollars are expanding once again, as flow migrate towards Asia. Many policy makers are monetizing these inflows.

 China’s PBoC  stepped up her liquidity injections, adding RMB 1 trillion to money markets through June. This should have a positive effect on the Chinese and World economies  


<ul>
<li>Fed Liquidity is trending higher through a 'Stealth' QE, despite latest dip in weekly numbers</li>
<li>Liquidity is the key ingredient driving asset markets higher it pays investors to closely monitor these vital inflow of funds</li>
<li>Fed Liquidity feeds into Global Liquidity, which includes the actions of other policy-makers, as well as the activities of private back and lenders. It has risen sizeably since late 2022</li>
</ul>


Fed Liquidity is trending higher through a 'Stealth' QE, despite latest dip in weekly numbers
Liquidity is the key ingredient driving asset markets higher it pays investors to closely monitor these vital inflow of funds
Fed Liquidity feeds into Global Liquidity, which includes the actions of other policy-makers, as well as the activities of private back and lenders. It has risen sizeably since late 2022


‘Stealth QE’ Continues At The Fed ... Probably

Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

Thematic (Sector/Industry)

<ul>
<li>Global equities finished the holiday-shortened week lower.</li>
<li>The MSCI World Index declined 2.01%, while the S&amp;P 500 fell 1.42%.</li>
<li>This snapped a six-week winning streak for the S&amp;P 500, which is still up 13.25% YTD.</li>
</ul>


Global equities finished the holiday-shortened week lower.
The MSCI World Index declined 2.01%, while the S&amp;P 500 fell 1.42%.
This snapped a six-week winning streak for the S&amp;P 500, which is still up 13.25% YTD.


Industry Report - Cannabis News for the Week Ending June 23, 2023

Global Multi-Asset Investment Strategist, True Insights

Jeroen Blokland

Global Multi-Asset Investment Strategist

Build Well-Diversified Multi-Asset Portfolios

True Insights

Our research helps investors build well-diversified multi-asset portfolios and profit from market developments. In addition, our unique and proven Macro – Sentiment – Valuation (MSV) investment framework ensures a consistent flow of new investment opportunities. Together with our market views, these opportunities will be reflected in our live ETF-based Global Multi-Asset Portfolios.

<ul>
<li>That Bank of England had to increase the pace of interest rate hikes so late in the tightening cycle is incontrovertible evidence that the central bank remains behind the curve. </li>
<li>Based on the historical relationship between consumer and producer prices, with a PPI of 1.0%, German headline inflation should be just below 2%</li>
<li>The NASDAQ Index and the US interest rates are diverging rapidly. This is not what is supposed to happen in a discounted cash flow model for growth stocks.</li>
</ul>


That Bank of England had to increase the pace of interest rate hikes so late in the tightening cycle is incontrovertible evidence that the central bank remains behind the curve. 
Based on the historical relationship between consumer and producer prices, with a PPI of 1.0%, German headline inflation should be just below 2%
The NASDAQ Index and the US interest rates are diverging rapidly. This is not what is supposed to happen in a discounted cash flow model for growth stocks.


The Weekly Market Monitor – Another Hawkish Twist

<ul>
<li>The valuation of Global and US Tech stocks is at extreme levels and are, by some metrics, more expansive than during the height of the Dot Com Bubble.</li>
<li>Earnings and sales growth are remarkably comparable to 1998 - April 2000, and investors are extrapolating these growth numbers too far.</li>
<li>On the other hand, the price performance of technology stocks does not resemble the rapid ascent witnessed during the Dot Com period at all. Yet, the downside risks are substantial.</li>
</ul>


The valuation of Global and US Tech stocks is at extreme levels and are, by some metrics, more expansive than during the height of the Dot Com Bubble.
Earnings and sales growth are remarkably comparable to 1998 - April 2000, and investors are extrapolating these growth numbers too far.
On the other hand, the price performance of technology stocks does not resemble the rapid ascent witnessed during the Dot Com period at all. Yet, the downside risks are substantial.


Is This a Valuation Bubble? Comparing the Dot-Com Boom to the AI Hype

United States

The MSCI World Index is a free-float weighted equity index. It was developed with a base value of 100 as of December 31, 1969. MXWO includes developed world markets, and does not include emerging markets. MXWD includes both emerging and developed markets.

MSCI World Index (MXWO INDEX)

Global Liquidity … Still Rising?

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Global equities finished the holiday-shortened week lower. The MSCI World Index declined 2.01%, while the S&P 500 fell 1.42%.

Water Tower Research

The Weekly Market Monitor – Another Hawkish Twist

The Bank of England confirms central banks and more monetary tightening is coming. Will investors shy away from (very) expensive equities and look...

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Is This a Valuation Bubble? Comparing the Dot-Com Boom to the AI Hype

Current market valuation is not as extreme as during the Dot Com Bubble. Yet, many metrics reveal that Technology stocks are once again very...

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