
âFrom a first-principles basis, global liquidity⊠drives risk assets,â Coutts opines, with the solemnity of a man who has seen the inner workings of the financial machine and lived to tell the tale. His analysis, built upon the foundations of central-bank balance sheets, global money supply, FX reserves, and the shadowy underbelly of commercial and shadow banking, reveals a connection so profound that one might almost call it a conspiracy. Yet, he warns, âMarkets are non-stationary⊠The correlation itself is a moving target, so I wouldnât get too tied up in charts where youâre fine-tuning the lag. That lag period will change all the time.â