Federal Reserve Balance sheet vs SPX

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Fed Balance sheet vs SPX

Its amazing to see the S&P500 breaking away from a long term correlation.

The Fed Balance sheet has shrunk from $8.97T to $6.6T but the markets have not been fazed.

Historically reductions in the balance sheet have resulted in markets selling off.

This time we are observing the markets trending higher.

Where is the liquidity coming from?

Is this time different?

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