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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts

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To: ajtj99 who wrote (70652)9/29/2022 3:11:25 PM
From: Lee Lichterman III1 Recommendation

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towerdog

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Someone brought up an interesting question in a space I listened to a few days ago and now I'm trying to work it out. Aside from the fallout from the declining housing market, effects of the stimulus withdrawal symptoms etc., They asked since QE really didn't help the little guy or really goose the economy and instead just made the rich richer, inflated stock prices etc, then could QT actually not hit the economy that hard and instead just crush the stock/bond markets.
Of course there will be fallout but not like what interest rate hikes do.
It could be an important question because once we have reversion to more realistic multiples, it's all going to come down to earnings. If QT stays somewhat insulated to a focus on the market but spares the overall economy, then the lows may not be as low as I've been looking for since I've been looking for multiple contraction AND earnings drops.
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