The biggest risk to the stock market in 2024 may be a liquidity shock from the Fed
By Matthew Fox, Business Insider
While the stock market catapults to new all-time highs to close out 2023, there is still one big risk that is lurking in 2024, according to a Tuesday note from Ned Davis Research.
That risk is the the shrinking of the Federal Reserve’s balance sheet to the tune of almost $100 billion per month, which could spark a liquidity crisis as Treasury issuances remain high.