How Much of a Factor Is the Fed?

The s n p 500 went up an average of 15 % a year from 20 ten through 20 20. Most observers believe that a good part of this out performance was because the fed was very actively pumping money into the system and, of course, keeping interest rates low. That liquidity drove money into stocks and was likely a factor in driving stock valuations to their highest levels since the dot com era of the early and late 19 nineties. It's reasonable to assume that the fed, withdrawing liquidity and raising rates, might account for a period of under performance for the markets - which is exactly what we are seeing right now.