Michael Howell, founder and CEO of Global Liquidity Index, joins Adam Taggart to discuss the global liquidity cycle and its implications for financial markets in 2026. Howell anticipates a challenging year, noting that the liquidity cycle peaked around Q4 2025, despite the Federal Reserve's efforts to ease repo market tensions. He highlights a divergence between the U.S. and Chinese liquidity cycles, with the U.S. cycle peaking while China's may be bottoming out. Howell suggests a shift from Fed QE to Treasury QE, directing liquidity into the real economy rather than financial markets. He forecasts a potential downturn lasting 30-35 months, advising investors to consider commodities and be cautious about equities and cryptocurrencies.
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