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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Rarebird who wrote (1035688)	10/30/2017 10:43:26 AM
From: RetiredNow	1 Recommendation Recommended By Mick Mørmøny Read Replies (4) \| Respond to of 1573920

Almost the entire amount the PE expansion since 2009 has been due to ongoing QE and the liquidity that has provided. The adjusted r-squared on that is 92%, which means that QE explains 92% of the variation. Why do you think QT will not have the opposite effect as they drain that liquidity from the markets? These things are symmetrical. The Fed has been very transparent about exactly how they are going to implement QT. It's not a mystery. So if you are trusting charts to justify a bull market, then you are potentially fighting the Fed or you are trusting the Fed lied about implementing QT, which may be true, but we'll find out in the very short term either way. Once the final October report comes out on the Fed's balance sheet, we'll know if they lied about QT or not.