By stopping the withdrawal out of the system, the Fed is acknowledging that they are worried that the economy is slowing too fast.
Birthed from the financial crisis in March 2009, this bull market grew quickly at first but stumbled early amid the aftermath of the Great Recession. It then hit its stride through much of its middle years, strengthened by the Fed’s medicine of increased money supply and lower interest rates.
The path for our equity markets will likely be more difficult for the balance of the year than it has been for the first two months of 2019.
Wall Street’s rosy earnings per share (EPS) estimates assume a static to improving operating environment over the next twelve months. However with domestic and global growth declining it is highly unlikely corporate profits have any chance to increase.