How to understand the flow?

<p>To understand the flow in a market one could look for few important points such as,</p><p><strong>Demographics</strong></p><p>The age distribution of a country’s population influences the amount and pattern of investment in a country. Aging individuals tend to invest in building up pensions, unlike youngsters who are spenders. If the aging population invests in equity-type schemes in a faster-growing economy, pensions will grow more quickly.</p><p><strong>Cyclical Liquidity</strong></p><p>Cyclical liquidity is the key to understanding the activities of central banks. Liquidity measures the operations of central banks and can be measured at a national or international level. Investors analyse the central banks’ behaviour to determine the performance of various asset classes at different stages of the liquidity cycle.</p><p><strong>Economic Fundamentals</strong></p><p>Under economic fundamentals, the fundamental balance is used to monitor when an economy is heading in the wrong direction. A fundamental balance provides a clear picture of a competitive environment that can be compared with others to determine the competitiveness of an economy. Investors will look at what is happening in an economy, particularly the flow of foreign direct investment.</p>