Is it just a coincidence that the Federal Reserve’s 350% increase in its balance sheet has exactly tracked the 200% increase in the S&P 500 over the last five years? Inquiring minds want to know whether the five years of QE created the stock market rally or whether it is just a coincidence that they coincided. The Fed is supposedly done expanding at the end of this month. Do you think that has anything to do with the volatility in the last couple weeks? Where do we go from here?
Is the stock market like a shark? If it doesn’t keep ingesting QE, does it die?
