What you may not know about the Smart Money Index

This is one in an occasional series of articles highlighting hidden investing factors. For the previous article in the series, please see What you may not know about small cap stocks.

There has been some buzz in social media about the following chart that correlates the Fed's balance sheet with the Smart Money Index (SMI). Readers can draw their own conclusions, but the initial take has bearish implications.

What's behind the SMI, and is it bearish for stock prices?

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