Wall Street, investors, the media, and the public are hyper-focused on the Federal Reserve’s rate hiking policy path… but the exact same trap door markets fell through in 2018 is about to open wide – and nobody’s talking about it.
That trap door is the Fed’s quantitative tightening (QT) plan, the inverse of its bull market- friendly quantitative easing (QE) program. Starting this September, as in right now, the Fed’s accelerating their QT operations, meaning the unwinding of their $9 trillion balance sheet.
Raising rates while simultaneously amping up QT will snap the stock market and the bond market. It happened in 2018 when the Fed began quantitative tightening.
But I’m not telling you this to ruin your day – quite the opposite, in fact. Because last time this happened, savvy players who were paying attention made a lot of money.
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