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home / news releases / DJD - It's The Liquidity Stupid


DJD - It's The Liquidity Stupid

  • Weekly returns in U.S. equity markets show a positive, minor correlation with weekly changes in liquidity; the change in returns do not occur immediately, but with a 5-8 month lag.
  • Liquidity has more than double the correlation with market returns compared to other macroeconomic factors such as GDP and unemployment.
  • This is empirical evidence for the hunch that many investors have: markets go where the Fed balance sheet goes.

For further details see:

It's The Liquidity, Stupid
Stock Information

Company Name: Invesco Dow Jones Industrial Average Dividend
Stock Symbol: DJD
Market: NYSE

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