Tuesday, September 05, 2006


I recently read the book Finacial Reckoning Day and I really had one major takeaway. As the US population ages it is going to withdrawl money out of the economy and the stockmarket. 401ks IRAs and regular investments are going to reduce - and who is there to replace that outflow. The inflows arent there.

Second point is on liquidity and volatility. With so much liquidity volatility has been squished. Spreads are tighter and there is more volume. If there really is a liquidity bubble and we see a contraction of liquidity what will happen to volatility?


Post a Comment

<< Home