Three more charts from BIS Quarterly (http://www.bis.org/publ/qtrpdf/r_qt1309a.pdf), showing the switch of liquidity out of the Emerging Markets into Advanced Economies...
And then from the Advanced Economies bonds into Advanced Economies equities with a small bounce up on Emerging Markets equities side too...
Two thoughts:
- There is no yield-driven bounce anymore, so pricing is not a huge help in this process; and
- Is this the end of the debt bubble and the start of the equities rise (structural, not nominal rise, driven by shift in corporate funding models) or is this a temporary slush of liquidity?
