, Columnist
Following the Money Suggests Stocks Have a Problem
Liquidity growth is falling sharply, implying significant risk of a decline in the market.
The liquidity is drying up.
Photographer: FRANCK FIFE/AFPThis article is for subscribers only.
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Markets are still trying to work out what would be most comfortable in the wake of the Federal Reserve’s shift in emphasis. After a big move away from the “reopening trade” at the end of last week, there was a return to it Monday, with stocks doing well, and bond yields rising a bit. The overall judgment that the latest Federal Open Market Committee meeting was bond-positive and stock-negative remains in place.