Central bank balance sheet expansion has been the main driving force behind the cyclical bull market in stock prices. The fading of pandemic stimulus should slow asset purchases allowing stock prices to consolidate. Bear markets almost always end with a change in leadership.
History shows pandemics, although exogenous events, can change economic behavior and ultimately have inflationary consequences.
Rapid growth in M2 money supply will result in increasing inflation expectations, rising credit demands and higher inflation.
China policy is turning pro-growth. Combined with recently announced stimulus measures from the Eurozone should foster a global industrial led recovery.
Any attempt by the Fed to peg its policy rate will only exacerbate underlying inflation trends.

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