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Legendary investor Byron Wien says the stock market is entering uncharted territory





7 27 17 fed balance sheet vs spx COTD

Since the start of the eight-year bull market, stock prices have closely tracked the size of the Federal Reserve’s balance sheet. But that’s quickly changing.

While the Fed’s balance sheet has stayed mostly unchanged in 2017, the S&P 500 has continued to climb, surging roughly 11% year-to-date. The fact that stock indexes continue to make new highs as the Fed prepares to shrink the assets it holds troubles Byron Wien, the vice chairman of Blackstone’s private wealth solutions group.

“This divergence is disturbing, particularly since the Fed is contemplating a balance sheet shrinkage starting in September,” he wrote in a read more >>>

Source:: BusinessInsider.Com

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