2024 Q2 Financial Report
by Labyrinth Capital
Introduction
As Q2 is underway, we have a variety of different moving parts for the upcoming quarter. In this report, we will be laying out the framework for how you as an investor and trader should approach this period of the year. To add, we will address key pointers that we laid out in the 2024 Financial Market Outlook published at the start of the year too.
The base case that we like to look at is the prospect of where liquidity is heading. Contrary to popular belief, here at Labyrinth Capital we have come to understand over the years that regardless of the converging macro indicators and historical data many economists like to utilise in their investing forecasts, the absolute base driving factor we like to watch closely is liquidity. From the start of 2024 the markets rallied on a broad basis with global liquidity matching this trend in an upward cycle.
We are at the stage now where the global economy is walking a fine line between data pointing towards a resilient US economy whilst trying to balance the huge amount of risk on a variety of vectors from geopolitics to credit standing. There are sectors like big tech and energy proving extremely robust whilst others like commercial real estate take a huge hit.
However, if we look at the picture from a broad basis, the US economy has been far stronger than we all anticipated with the reality of situation being that tightening at large was stopped back in March 2023.
Liquidity is the dictating factor
To begin this report lets cover liquidity. Firstly we will breakdown how liquidity is analysed from our perspective because the term has been seemingly rinsed by economists who wish to attach complexity to the phrase. Liquidity should be looked at as nothing else other than the reserves held by commercial banks at the domestic central bank. The following is a breakdown of the Federal Reserve’s balance sheet. In red are liabilities…….
To carry on reading this 21 page report where we broke down the major catalysts for the upcoming quarter as well as covering every major asset class (Bitcoin, Crypto, DXY, Gold + global economies) see the link below. This is strictly for investors, traders, economists and learners who wish to be more in tune with the economy. You will know what to look for as the quarter commences.
Get the report below:
