The US equity market has had a massive linear recovery in the first few months of 2019. The sell-off that occurred in the fourth quarter of 2018 was driven by concerns over higher US interest rates and a slimming down of the Federal Reserve balance sheet.

The stock market reaction was a 20% pullback from the September high to the December low. That reaction was sufficiently shocking to cause the Fed to make a U-turn on its policy of "rates moving higher on autopilot".

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