Liquidity stands out as the predominant driver in modern financial markets.

While interest rates have traditionally been the focal point in financial analysis, it is actually the movements of liquidity that effectively steer market patterns.

As debt levels soar to unparalleled levels, our financial system is progressively moving towards perpetual debt refinancing rather than fresh capital investments.

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The Liquidity Seasonality Chart demonstrates an overall upward trend in liquidity levels over the course of the year. Despite occasional obstacles, liquidity shows a notable increase, particularly towards the year-end.

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This trend sheds light on the reason behind the significant upsurge witnessed in asset markets during specific periods.

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Grasping the fluctuating liquidity patterns throughout seasons can provide a valuable edge in investment decisions, especially when integrated with additional market analysis resources.

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Important to note is that this chart uses the last 25 years' worth of data. While arguably that is still a low sample size, going any further into past may provide inaccurate readings due to the obvious change in monetary system that has taken place over the past two, but during the last decade in particular.

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So far, we haven't seen anyone else share this type of study case, and while we seem to be the first ones to experiment with it, the study does make a compelling case to be included in a forward-looking analysis.