The Fed has cut interest rates three times this year and now it is expanding its balance sheet in what it seems to be 4th quantitative easing (QE). Financial markets would suggest otherwise, as it has been off to the races for risk assets since the Fed’s new QE program began two months ago, while the rate of economic growth continues to slow. The clear divergence between market prices and fundamentals are hard to ignore evident by the form of stagnant corporate profits over the past several years. Worse yet, corporate America has had the benefit of a massive tax cut, which has boosted after tax profits, but reduced tax revenues to levels only seen at the depths of the last two recessions. The less taxes to pay for corporate america means more stock buybacks with the saved tax money`which further fueled the bubble in the stock market. This is not sustainable, when tax rates inevitably increase to help address what are now $1 trillion deficits, investors will face a significant headwind. This is another example of borrowing from the future to make today look a whole lot better than it really is,