MS Pro Briefing | 30th July 2025
Liquidity fragility, Job illusion, Dollar dynamics, and more..
MS Pro has a simple aim: to make your job easier. Our team combs through hundreds of academic and institutional reports every week. With MS Pro, we seek to simplify this into clear, concise, and actionable insights.
Actionable Insights
Examining the average bid-ask spread alone can give a false sense of security. To truly understand how markets behave under stress, it is also important to track measures such as skewness and kurtosis. These help spot hidden risks by showing how often and how sharply liquidity can dry up, especially in fast-moving markets like equities and FX.
To better assess economic health, track employment growth within procyclical sectors like construction and business services rather than relying solely on total job numbers. A slowdown in these sectors, even when overall employment is rising, may signal early signs of an economic downturn.
The dollar and U.S. Treasuries are still at the centre of the global financial system, but confidence in them is starting to fade. It’s not that a sudden collapse is coming, but more people are thinking seriously about what might come next. Eurobonds are one option getting a lot of attention, so it’s something to keep an eye on.
Passive investing has made markets more accessible and affordable, but it also brings new risks when things turn volatile. Since index funds tend to put more money into stocks that are already climbing, prices can move away from what companies are really worth. Adding strategies that focus on fundamentals or regularly rebalance across stocks can help keep risk in check and support long-term returns.