Stop cheering for this rally! The stock reset is coming—commentary: "And then it all stopped. The Fed's balance sheet was about $500 billion in 1998 and expanded to $4.5 trillion by 2014. However, it has stayed around that level for the past two years. Since then, the U.S. stock market has not risen and the global economy has been thrown into turmoil.
It's all about the money. Not how much is in the stock market but what the value of the U.S. dollar is relative to other currencies. When the Fed ceases expanding its balance sheet, the dollar appreciates. It's math. The bad news is that prices of risk assets will reset correspondingly lower. The good news is that it's the way back to reality."
'via Blog this'
