In today’s briefing:
- Money Supply-Driven Excess Liquidity Unveils 20% S&P 500 Downside Blog
- The Week That Was in ASEAN@Smartkarma – GoTo CM Breakeven, Siloam Hospitals, and BNI in Better Shape
Money Supply-Driven Excess Liquidity Unveils 20% S&P 500 Downside Blog
- Year-On-Year, M2 broad money supply has dropped by 4.1%. The 6-month annualized rate of decline is a whopping 6.5%.
- As a result, Excess Liquidity (Money Supply Growth – Nominal GDP growth) has turned very negative, revealing money is being drawn from equities at a historically rapid pace.
- Given the historical relationship between Excess Liquidity and Valuation, the forward P/E ratio of US Equities must drop to 16 from 19 for the two variables to align.
The Week That Was in ASEAN@Smartkarma – GoTo CM Breakeven, Siloam Hospitals, and BNI in Better Shape
- The Week That Was in ASEAN@Smartkarma is filled with an eclectic mix of differentiated, substantive, and actionable insights, macro and equity bottom-up, from across South East Asia
- The past week saw Insights on GoTo (GOTO IJ), Siloam International Hospitals (SILO IJ), AKR Corporindo (AKRA IJ), Bank Negara Indonesia (BBNI IJ) , and Metro Pacific (MPI PM)
- There were also insights on Delta Electronics Thai (DELTA TB), Genting Singapore (GENS SP), HM Sampoerna (HMSP IJ), Bank Rakyat Indonesia (BBRI IJ) and Thai Banks.
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