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Bearish QT review

Summary:
The list is endless…$SPY The last time the Fed began Quantitative Tightening (QT) was back in September 2018. Stocks immediately fell -20% the next 3 months. The Fed will begin QT again in September 2022. Wonder what will happen... Heart if u are thinking what I am thinking... ❤️‍🔥 pic.twitter.com/ym33twD2kf— Heisenberg (@Mr_Derivatives) August 18, 2022 Quite a rally given Quantitative Tightening, right? No. The Fed's has not yet reduced its Mortgage-Backed Securities Holdings, which have INCREASED since the start of QT June 1. Higher rates inhibit refinancing, so that's not happening. They knew this right? Right? pic.twitter.com/W1yfDB0ut0— michaelburry (@MikeJBurry) August 18, 2022 At least all that excess liquidity has been removed by the Fed's intense quantitative tightening program

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Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

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