Where Is The World Economy Heading?

Or What’s Not To Like?

September has notoriously proven a tough month to make money. Bond market volatility, possibly because of the US fiscal year-end, is typically high. This can temporarily dent Global Liquidity. Nonetheless, the latest data (shown below) just hit US$176.8 trillion. It is now 17% up at an annualized rate over three-months and moving clear of the recent ‘air pocket’. We still need the US Fed and China’s PBoC to do more, but rising collateral and the general drift lower in bond volatility have been firm bulwarks.