It’s all about liquidity.
According to BofA $Bank of America(BAC)$ , Fed balance sheet expansion is responsible for 51% of the SPX $S&P 500(.SPX)$ returns since the GFC, by far the biggest driver of returns.
Earnings account for 23%, and multiple expansion most of the remaining. $Invesco QQQ Trust(QQQ)$ $DJIA(.DJI)$
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According to GS Prime data, hedge fund net exposure remains near 5 year lows and has not moved meaningfully in the last 4 months.
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https://twitter.com/Marlin_Capital/status/1641417917999767553
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