How a "Money Waterfall" Works... (And the Week Ahead)

Markets are closed on Monday, and things are starting to change around here in the Republic

Dear Reader:

“There are two words I hate in editorial,” Steve said.

What were they?

Liquidity… and volatility.

That’s how a second conversation started in the gym yesterday.

Steve is a fantastic writer and a friend from my time with a different publisher.

He had a suggestion regarding my editorial...

“Every time you mention liquidity, all I can think is the term, ‘Capital Wave.’”

I agree.

How fitting his insight came yesterday.

I’ve been chatting with colleagues about how we can shape and visualize the concepts that we focus on here in this publication.

Liquidity and water... well, they go hand in hand.

(Volatility is more like an earthquake).

In markets, lots of liquidity is like a flash flood, a tidal crest, a capital wave.

And a dearth of it is like a drought, a clogged pipeline, or a natural disaster.

I don’t believe it's a coincidence that Steve, a long-time friend and reader, made this recommendation and observation at the same time I’ve been having these same conversations with publ…