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Why You Shouldn't Get Too Comfortable Holding Risk Assets

Real Vision: Finance & Investing

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Dollar Liquidity Withdrawals

The federal reserve will have to discuss whether to continue with dollar liquidity withdrawals. And we are currently stuck at above $3 trillion, so they will have to withdraw in between 5 and 600 billion worth of dollar liquidity from now and until the end of the QT program. So ultimately, it will prove to be dollar positive likely and also negative for risk assets. This is a very tight correlation between dollar liquidity and the S&P 500 since 2020 - basically since the pandemic.

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