Friday, 14 July 2017

Stocks could crash from Fed liquidity drain

Markets rose on Thursday.

The S&P 500 rose 0.2 percent while the Dow Jones Industrial Average rose 0.1 percent to log its 24th record of 2017.

According to a CNBC report, the US stock market's rally despite political uncertainty is not unusual by historical standards.

However, Nigam Arora thinks that stocks could crash if the Federal Reserve's attempt to drain liquidity from the financial system ends up harming the economy or securities.

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