5min chapter

The Macro Trading Floor cover image

It's All About Liquidity & Inflation Now

The Macro Trading Floor

CHAPTER

The Relationship Between the Liquidity Proxy and the S&P 500

The Federal Reserve will still allow quantitative tightening to run its course. The correlation over the past two years would suggest that the S&P 500 drops in value from here. If you look at this correlation in a slightly longer timeframe, especially between say 2016 and 2020, you essentially get zero correlation. It's not a given that this is the only thing that will move markets.

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