During 2013, the Fed printed $1 trillion and the S&P 500 Index rose 30%. During 2014, the Fed printed $450 billion and the S&P rose 11%. Since 31 October 2014 when QE 3 ended, the S&P is flat.

Worse still, it is vulnerable to a sharp correction given stretched valuations, the weak economy and contracting corporate earnings.

Monetary tightening began with the end of QE 3.

What all of this has done is left us in suspended animation!

Markets In Suspended Animation