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RiskReversal Pod

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Is the Fed Taking Away Liquidity?

The S&P 500 ended January 5.8% below the high it set on January 3rd. The Dow had fallen 1206 points to start the year or 3.25% and ended 4.5% below that first day high. Who saw it coming here? Well, I mean, David Zebra comes on CNBC for years and I get upset because he makes it so simple. But if that's true, the same should be true when the Fed's taking away liquidity and adding and raising interest rates. If you're bullish under that environment, you're effectively fighting the Federal Reserve.

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