Instead, this stock market “melt up” is being largely fueled by reckless intervention by the Federal Reserve. The Fed’s balance sheet has been ballooning once again, and investors know that stock prices tend to go up significantly when that is happening. So right now Wall Street is in the midst of a raucous party, and everything will be wonderful as long as stock prices continue to move in the right direction.
Unfortunately, no stock market rally lasts forever, and a day of reckoning is coming.
