n this April 2025 Strategist’s Corner, MFS’s Robert Almeida explores how tightening liquidity conditions and macro headwinds may reshape equity performance, especially in the U.S. market.
- Elevated trading volumes in April contrast with diminished liquidity, amplifying volatility and exposing vulnerable assets.
- U.S. equities have long benefited from post-GFC tailwinds—low rates, globalization, and stimulus-fueled liquidity—but these are now turning into headwinds.
- Liquidity-driven outperformance is fading, and higher-duration U.S. tech stocks are increasingly sensitive to liquidity shocks.
Read the full report for insights into how shrinking liquidity and global policy shifts could alter long-term equity strategy.
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