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By David Scott | Monday 18 January 2016
The end of the Fed’s free ride is that it transported us back out of Wonderland where bad news was good news, which has lasted nearly seven years. For years we’ve seen the market go up when economic news was bad. That Mad-Hatter reaction happened because bad economic news meant the Fed would prolong its stimulus, and stimulus was, by far, the biggest game in town. That dynamic ended on December 16. Now we’re back in economic reality where bad news is simply bad news.
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