The main misconception of the modern investor is the belief that market movements are driven by corporate reports, macroeconomic statistics, or statements from central bank heads. In my deep conviction, based on years of analysis, all of this is nothing more than "noise." The reality is much more prosaic and at the same time more fundamental: the market is ruled exclusively by global liquidity.
I have repeatedly highlighted this phenomenon in my research. The correlation between the Nasdaq 100 index and total global liquidity over the past 15 years is a staggering 97%. This figure leaves no room for debate. When I first saw this chart, I was struck by its accuracy. The coincidence is so perfect that it became obvious: we are dealing not with randomness, but with the basic code of the modern economy.
It is this discovery that forms the foundation of my "Everything Code" concept, which I have been developing at my analytical firm since 2023. This is perhaps the most important knowledge I can pass on to anyone seeking to understand the structure of financial markets. Fundamental factors—profits, GDP, sentiment—are secondary. The primary factor is the flow of money.
Practical Takeaway for the Investor
A critically important practical conclusion follows from this thesis. If the market is merely a function of global liquidity, then the investor's task is reduced not to analyzing news headlines, but to forecasting the dynamics of the money supply. Trying to predict the movement of the Nasdaq by studying Apple's earnings or listening to Jerome Powell's speech is the same as trying to predict the weather by the shape of clouds while ignoring the barometer readings.
Community Reaction
The reaction of the professional community to this concept was predictably mixed. Analyst Michaël van de Poppe called this chart "excellent," noting that Bitcoin, which temporarily broke its correlation with liquidity, will sooner or later return to it and could receive a powerful boost. Another analyst, Zack Humphries, wondered when liquidity would return to the cryptocurrency market and whether a major capital rotation should be expected.
Some commenters were skeptical of the thesis, rightly pointing out the difficulty of accurately forecasting global liquidity itself. Indeed, the main problem is not in proving the correlation—it is obvious. The problem lies in building a reliable forecast for the future dynamics of the money supply.
My expert assessment: The "Everything Code" concept is not just a beautiful theory, but a working tool. Ignoring the 97% correlation between liquidity and the market means consciously rejecting the most powerful predictor in an investor's arsenal. The market is not a story about companies; it is a story about money. And whoever learns to read this chart first will gain a colossal advantage.