Markets and liquidity inflows

Posted: December 5, 2013 in Uncategorized

At the end, market is all about liquidity. The more the people want to buy the more the market rise. The more money the people have the more the people will buy.

This explain the market behavior.  In the US the Institutional are “at the window” and the Fed pulled back (decrease in Option flows) not top overheat the market.

A study of Goldman Sachs sees that the Australian market suffered the most also due to the number of IPO (Initial Public Offering) hitting the market between November December) that drained from the market AUD7.5bn in November and will drain  this month until the 15 Dec another AUD4.5bn – without taking account off market transactions and the rumors that Shell is divesting another bit of its Woodside Petroleum.  After these deals are down, bar anything else happening, the market will return to previous levels.

In Australia, there are few IPO’s also at the start of 2014, but much less than the last 2 months. Then towards the mid/end of the year will start the Merger and Acquisition cycle which would be positive for the market

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