For many of us who have spent years navigating Singapore and regional markets, we often get caught up in the “noise”. We look at quarterly earnings, we pay attention to whether a REIT’s occupancy declined 1%, or whether a company’s CEO had a bad day during an analyst call. But after decades of investing, I realized that a huge tide was about to come into the game. It’s not just about ships; It’s about water level.
In economics we call this m2 money supply. To put it plainly, it’s just a matter of how much “stuff” is circulating in the system. When the taps are open, everything feels like a genius-level investment. When the taps are turned off, even the best companies struggle to stay above water. Let’s peel back the layers of how this liquidity actually determines the price of our assets.
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