The big question worrying investors today is how markets will react when the Federal Reserve starts trimming its stimulus program, something that could happen as soon as this year.
The answer may not be that hard to figure out. The Fed has cut back on stimulus twice before in the past three years. Each time, the market hated it. There is every risk it will hate it again this time.
Investors cling to stimulus in part because it involves tens of billions of extra dollars injected directly into markets each month. It is a very welcome drug. And like addicts, markets have developed something resembling a dependence.
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