“The Paint May Be Drying, But The Wall Is About To Crumble”: BofA Explains What The Market Is Missing

One of the recurring laments about the Fed’s hiking cycle, most recently from Goldman, is that despite 2 rate hikes so far this year, financial conditions remain the loosest they have been in over two years. Whether that is due to the market being so drunk on the Fed’s “punch bowl” it is unable to grasp the liquidity is being dragged away, or for some other unknown reason despite repeated warnings by FOMC members that stocks here are overvalued, markets simply refuse to concede that financial conditions should be tighter, in fact, as Goldman observed yesterday “so far, the Fed’s efforts to tighten financial conditions have achieved too little, not too much.”

This post was published at Zero Hedge on Jun 29, 2017.