The transfer market just closed a few weeks ago.
It was a freaky result yesterday, considering Liverpool remarkably won on xG (2.09 vs 1.66), albeit well deserved.
But this has been the running theme for years now, if you look at the aggregate xG score this decade : Liverpool (6.30) 3-9 (5.34) Real Madrid.
I don't think it's all down to Liverpool's lack of confidence, because Real did the same to City and PSG last year etc. They never lose confidence, they're just too experienced and composed, their spine of the team has won the most silverware in world football currently, they're on the opposite side of that whole spectrum. Playing an 18-year-old Bajcetic against a 37-year-old Modric was a massive blunder, but again, Klopp is very limited with his choices currently and has to risk it.
I definitely think Real have a mental edge over Liverpool in particular because of their recent h2h results, to the point not even Anfield can faze them. Didn't take them long to realize that even if Liverpool are capable of creating good clear-cut chances they are still wide open in the middle and at the back.
What's more worrying is what's happening off the pitch, with John Henry now blatantly saying the club is not for sale.