The U.S. Federal Reserve has something of a love-hate relationship with its latest liquidity injection policy. The Fed keeps having to supply money markets with more and more liquidity, which has contributed to boosting the S&P 500 (Index: SPX) to four new record highs in the last week, but Fed officials are signaling they really want to stop.
That may be why investors appear to now be focusing strongly on 2020-Q4 in setting today's stock prices, as suggested by the dividend futures-based model that underlies our alternative futures spaghetti forecast chart for stock prices: