What Happens Next?

Since The Federal Reserve unleashed QE, US Stocks have massively outperformed the Rest of the World…

So the question is what has happened since the end of QE3 in Oct 2014? Simple – it's been all ECB and BOJ as The Fed balance sheet has flatlined…

Did the "all stimulus is fungible" message just shift? A look at the red oval in the upper right, raises the question – what happens next?

US Stocks have continued their rise – with ECB/BOJ 'money' enabling the S&P to reach a point where it is over 400 points rich to The Fed's balance sheet.

As The Fed begins to plan for normalization of the balance sheet, are US stocks set to catch back down to the world's non-US stocks?

Through 2019, The Fed has over $900bn of Treasuries maturing…

Now explain how that is not 'tightening' financial conditions.


via Read More Here..

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