How long can the Fed ‘put’ hold sway?

IN HIS excellent article “How ‘the mother of all bubbles’ will pop” (BT, Dec 18) Ruchir Sharma correctly points out that Wall Street has been in the grip of an unprecedented mania for some time now, and argues that because virtually every analyst is predicting continued outperformance in 2025, this only confirms that the bubble is at a very advanced stage.

“If the consensus on ‘American exceptionalism’ is so overwhelming, who is left to hop on the bandwagon and inflate it further?” was the question posed.

The answer, in my view, is it would be those who continue to place their faith in the fabled “Fed put” which has backstopped the US market for more than 30 years now.