- The missing, but long-overdue correction in stocks is probably a factor of the relentless pumping of electronic dollars into the financial system at a rate of $120 billion per month, causing the Fed balance sheet to rise to $8.349 trillion at last count.
- Suppressing bond market volatility also means suppressing stock market volatility. That’s why when the Fed finally tapers, both the bond and stock markets will shake.
- The pump rate will likely throttle down by the end of the year, so the trillion-dollar question is: By how much?
For further details see:
Waiting For The Long-Overdue Stock Market Correction