When the value of stocks depends on whether or not the plutocrats in the Federal Reserve feed their fat cat buddies on the Street their dose of “liquidity” rather than the economic fundamental of each company, the markets begin to breakdown. While the stock market has been rising, America has been drawing down money from equity funds. Decreased demand for these securities should have led to lower prices, but it didn’t. When the market is going well, daily volumes should be setting records. These prices spikes accompanied by low volumes are unprecedented.
Don’t worry. The Fed knows exactly what it is doing.