This isn't a real economy. It's all QE, ZIRP and other monetary policy experiments.
The US economy grew 2.4% last year after trillions of QE and years of zero rates. Put the trillions of Fed holdings back into the market and moves rates up to 4.00% and the economy is right back in recession.
The central banks of the world are an insane asylum and the only cure is another needle in the arm. You can lower the dose for awhile (like the Fed is doing) but the economy won't suddenly be functional.
h/t @NorthmanTrader
Here's how Ed Yardeni Yardeni Research wrote in his daily research report:
"As long as central banks continue to pour liquidity into the financial markets to boost inflation, the 'insanity trade' should continue to work. It's insane to imagine yields falling much further below zero in the Eurozone, but they do make U.S. bond yields look mighty attractive still, even though they are insanely low too, though still above zero. Global stock markets should continue to rise, and possibly melt up, even though valuation multiples are getting a bit loony in the U.S. Commodity producers should remain depressed losers, while commodity users should remain manic winners."