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The biggest risk to the stock market in 2024 may be a liquidity shock from the Fed

The biggest risk to the stock market in 2024 may be a liquidity shock from the Fed

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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.

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