Risk assets set to benefit most from rising liquidity

Merkle Capital, a licensed digital asset fund manager in Thailand, expects a broad improvement in global liquidity next year, setting the stage for growth across equities, fixed income, real estate investment trusts (REITs), and assets such as Bitcoin and gold.

- NUNTAWUN POLKUAMDEE

Thanalop Preedamanoch, fund manager at Merkle, said a dominant investment theme for late 2025 through mid-2026 is the global easing cycle, as markets increasingly anticipate 2-3 additional Federal Reserve rate cuts next year.

The Fed also signalled it will halt balance sheet reduction through quantitative tightening on Dec 1, and analysts predict the US regulator may even resume quantitative easing next year, reinforcing the view that global liquidity is rising, according to Merkle.

Against this backdrop, risk assets stand to benefit the most. Equities and yield-bearing instruments such as bonds and REITs are poised to attract capital inflows, while store-of-value assets may outperform given their strong historical correlation with global liquidity, he said.