World liquidity expansion accelerates in March 2011
In March 2011, world liquidity remained ample and will remain so in the very short term.
A rapid expansion of the world liquidity, thanks to the Fed and the emerging world, is a strong support to risky assets (mainly equities and commodities).
However, the QE2 will end in June and it is now very likely beginning that the Fed will begin its exit strategy in the second half of 2011, dragging down the US liquidity on a sequential basis. In the Emerging world, monetary tightening is also expected to lead to a gradual slowdown in liquidity growth.
In conclusion, on the very short run, world liquidity will remain ample and positive for markets. But, this will fade away after the summer.