The Fed has begun shrinking its balance sheet and we are finally seeing the numbers to prove it, not just the talk. Those numbers are small so far, but the rate of withdrawal doubles this month, and will go up by $10 billion per month every quarter until it hits $50 billion per month in October.
It hasn’t happened yet, but at some point during this period of ratcheting up of the pressure, the stock market should start to roll over.
Other banking indicators show that market conditions remain bubbly, and risky.
Here’s what to watch and what you need to know.
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