This QE cycle was massive (bigger than the previous rounds) and its unwind is likely to be quicker (4-5 months). Equity valuations are also a lot higher today!
Many expecting a year-end rally but $NDX peaked over 3 weeks ago and recent bounce failed well below ATH...
Many expecting a year-end rally but $NDX peaked over 3 weeks ago and recent bounce failed well below ATH...
Anything can happen but it looks increasingly likely that the carnage is now spreading to the indices.
The risk/reward over the following weeks is unfavourable, stocks likely to be lower in 2022 before Fed comes to the rescue again.
The Fed will help but only after more pain.
The risk/reward over the following weeks is unfavourable, stocks likely to be lower in 2022 before Fed comes to the rescue again.
The Fed will help but only after more pain.
Fairly obvious that we were in a QE-induced bubble.
In my interview last year (July 2020) with @Matt_Cochrane7 , I clearly mentioned that we were in an 'incipient bubble' which was likely to blow into a full fledged mania before the bust.
When liquidity shrinks, bubbles pop.
In my interview last year (July 2020) with @Matt_Cochrane7 , I clearly mentioned that we were in an 'incipient bubble' which was likely to blow into a full fledged mania before the bust.
When liquidity shrinks, bubbles pop.
Here is my recent discussion (Nov 2021) where I made the case for a contraction in risk assets....posting this not to gloat but to hopefully, help newbies understand what is going on in the financial markets....
Hope this is useful.
Hope this is useful.
Here is the July 2020 interview with @Matt_Cochrane7 where I explained what is going on in the financial markets now.
In the below video, we discussed the tech bubble at the 11 minutes 49 second mark...
In the below video, we discussed the tech bubble at the 11 minutes 49 second mark...
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