The Fed’s Game Of Chicken With The Stock Market
February 01, 2023 at 10:45 AM EST
Via Global Macro Monitor, The following chart suggests the stock market still has an outsized influence on the economy. In theory, the market capitalization to GDP ratio should be a mean reverting time series. We don’t know for certain, but we suspect there is still way too much liquidity/money, however loosely defined, in the system. […] Source