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- Let's Be The Youngest In The 'age Of Liquidity'... Investors Heading To The Otc Market
Let's Be The Youngest In The 'Age Of Liquidity'... Investors Heading To The OTC Market
Let's Be The Youngest In The 'Age Of Liquidity'... Investors Heading To The OTC Market
After the 2008 global financial crisis, central banks around the world provided liquidity to the market through stimulus measures. Passive investing (which tracks the index) has also grown significantly. In addition, the number of listed companies decreased. The result is a large imbalance between supply and demand (in financial markets). Risk asset prices have continued to soar, but the era of central bank liquidity is coming to an end. As central banks begin to curtail the massive amounts of liquidity they have been pumping into the markets, public markets will become more vulnerable to shocks from macro and micro factors. This means investors can no longer rely on (government) intervention to keep asset prices from rising.