scorecardresearchWhat to do when the stock prices are driven primarily by liquidity?

What to do when the stock prices are driven primarily by liquidity?

Updated: 20 Jan 2022, 10:11 AM IST
TL;DR.
Stock market surge usually indicates good macroeconomic fundamentals, but not always. When the market rally is steered by liquidity, i.e. when investors have too much cash to invest, it may not sustain for long. Read more to know if there is a reason to worry for you.
Liquidity rally takes place when too much cash in the hands of investors trigger an increased demand of stocks followed by an increase in prices.

Liquidity rally takes place when too much cash in the hands of investors trigger an increased demand of stocks followed by an increase in prices.