So the Fed saved the day… As soon as the market realized the Fed is ready to stop its QT policy, everything changed. So let’s be very clear: NO, the market isn’t strong. On one hand you have investors and even high level people at the Fed saying Fed balance sheet not important and then they barely reduce it and the market wet itself. Clearly that’s BS.
Where is all the money going? There is much contradictory information today. This is particularly evident since the last few trading days in 2018. With the Fed signaling that they will continue to pursue ultra easy monetary policies, what does that mean for equities? Could they rise infinitely, or will a massive trigger event set off the markets on a downward trend?
The ‘smart money’ isn’t buying the stock-market bounce, and that could mean a test of the lows: analyst – MarketWatch
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Jeffrey Gundlach on Twitter: “Currently $122 Trillion US unfunded liabilities per Debtclock. That’s 564% of Fiscal ‘18 GDP. To fund would require 10% of GDP for 56+ yrs.”
Currently $122 Trillion US unfunded liabilities per Debtclock. That’s 564% of Fiscal ‘18 GDP. To fund would require 10% of GDP for 56+ yrs.
— Jeffrey Gundlach (@TruthGundlach) January 28, 2019