Some observers worried the unprecedented volumes of cash could spell trouble for markets. "This is far more important than people realize," said Guy Adami.

Allianz's chief economic advisor suggested workers might lack the skills employers want, and predicted stimulus would fuel an "everything rally."

BlackRock's CIO of global fixed income says the Fed should reduce its monthly $120 billion bond purchases, but maintain "accommodative" policies.

Bitcoin picked up on Monday as investors appeared to be drawn in by the sharp price fall.

If bitcoin were to fail, it would disrupt the current "liquidity paradigm," Allianz's chief economic advisor said.

Bank stocks drop Friday after the Federal Reserve opts to let a rule change on capital requirements for big lenders expire.

Liquid assets are assets that can be converted to cash quickly and, by extension, are highly marketable. The most liquid assets have a broad pool of buyers and trade on major exchanges: Think shares of major US corporations and bonds issued by the US government. The least liquid assets are […]

Bridgewater’s Bob Prince told CNBC on Wednesday that the stock market is facing an “overflowing river of liquidity” from the combination of government spending to replace lost income and high rates of saving. The hedge fund’s co-chief investment officer said the US administration post election will only “re-route” the river […]

Liquidity refers to how much cash is readily available, or how quickly something can be converted to cash. Market liquidity applies to how easy it is to sell an investment – how big and constant a market there is for it. Accounting liquidity refers to the amount of ready money […]

Oaktree Capital Management high yield portfolio manager Madelaine Jones says economic recovery depends on when the pandemic is resolved. “Until fundamentals really do improve, conflicting economic data and political shocks could spark more market ructions,” she wrote Thursday. A large amount of company defaults in the future could be one […]

Mike Novogratz told CNBC on Friday that any dips in the market from Joe Biden’s tax plan will be buying opportunities for investors, as the next stimulus will provide a “liquidity tsunami.” The Galaxy Digital CEO said he expects a blue wave victory and subsequent volatility in the markets as […]

AMC fell as much as 25% Wednesday, extending its selloff for the second day after reporting that it may run out of cash before the end of the year. On Tuesday evening AMC CEO Adam Aron told Bloomberg that the theatre chain is not considering bankruptcy at the moment and […]

Wharton Professor of Finance Jeremy Siegel told CNBC on Monday the stock market will gain next year regardless of whether Trump or Biden wins the US presidential election. He said the “tremendous burst of liquidity” from the Fed and Congressional stimulus aid will likely support a bull market that continues […]

Economist Mohamed El-Erian says markets may falter as the Fed’s liquidity “engine” becomes less and less powerful, and as investors begin to challenge elevated valuations. “If that engine disappears, we have a long way between where asset prices are right now and where fundamentals will validate them,” he told Bloomberg […]

Mohamed El-Erian told CNBC that there’s no doubt in his mind that liquidity from the Fed has encouraged investors to take “excessive risks.” The economist said that the Fed’s statement yesterday reinforced expectations of liquidity that are driving the market. He added that the Fed’s accommodative policy is necessary, but […]

Sherry Paul, UBS Financial Services senior portfolio manager, told Bloomberg that investors should not shy away from stepping into the stock market even as it reaches new highs. The S&P 500 closed at a record on Tuesday. Paul said it’s typical for retail investors to “feel nervous when markets hit […]

The stock market’s rally is trapped in a Federal Reserve-formed liquidity bubble, billionaire investor George Soros said in an interview with Italian publication La Repubblica. Valuations rest on hopes for a second fiscal stimulus bill and President Trump announcing a coronavirus vaccine before election day, Soros added. The legendary investor […]