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Easy money bull runs to end soon according to ASCO

Liquidity-driven stock market rallies are coming to an end following the tapering of rapid fire money printing at most major central banks, warns the Association of Securities Companies.

“We’ve been in the quantitative easing [QE] era since 2008 with money flooding stock markets across the globe, but the magnitude of cash pumping is gradually being scaled back and the liquidity surplus era is ending. We should no longer expect offshore fund flows to drive stock markets,” said Pattera Dilokrungthirapop, the association’s chairwoman.

The US Federal Reserve is leading its major counterparts in winding down QE and lifting its policy rate, while money pumping by other central banks is falling, said Mrs Pattera.

Excess liquidity in global financial markets has resulted in record highs for a number of bourses around the world. Even though the benchmark Stock Exchange of Thailand index has not recorded a new low since the 2008 financial crisis, it has more than doubled from 784.24 points in January 2008.


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Joe Miller
the authorJoe Miller
Born in Europe, raised in Australia, I have been living in Thailand for over 20 years and witnessed the many changes the country has undergone since the Asian Financial Crisis. I have spent time in Phuket, Samui, Hua Hin, and Chiang Mai, but when all is said and done I gravitate back to Bangkok. It is here that I spent years teaching at universities and running a software development company. These days I live on the Internet with Bangkok as my base. I never stopped believing in the enormous potential of the kingdom of Thailand, which is why I joined the ThaiVest Team.

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