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Today, in a comparable analysis by Citigroup, the bank's economist Kim jensen also looks at the global balance sheet and specifically the moment when it will stop growing, and also what may happen once the "unprecedented balance sheet changes" unleashed by central banks finally go into reverse, and liquidity is extracted: "We expect advanced economy (AE) net asset purchases to fall to roughly zero over the next 12-18 months, as the Fed reduces its balance sheet and the ECB, BoJ and Riksbank reduce their net asset purchases."
What happens once Q3 (or Q4) 2018 comes and the global fungible liquidity firehose of "flow" (remember it was back in 2012 that Goldman first admitted that when it comes to asset prices, only the "flow" of central bank assets matters, not the stock) is the question.
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