When CBs Stop Buying

No place for beginners or sensitive hearts
When sentiment is left to chance
No place to be ending but somewhere to start
--Sade

Contrary to popular opinion, including that of the president, stocks have been going up not because of a strengthening economy--but because of asset buying by central banks worldwide. The correlation is unmistakable.

Now CBs are 'tapering' purchases. Some plan outright sales. The projected impact on stocks is not pretty.

It won't matter until it does. And then it will matter a lot.

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