The Fed is stopping Quantative Tightening in December. In January it is likely they will pivot to QE. This often signals a bull run.

#1 rule of investing- don’t fight the Fed.

The fed announced it would stop QT and reducing the balance sheet in December. They didn’t say if or when they’d pivot to QE, but the expectation is it will be next year (still speculative).

QE (aka printing money) almost always correlates (causes?) a bull run in the stock market and assets to go up. A Quick Look at qe vs the market show this. A great example is 2020-2022. However, printing money also can lead to inflation if too much money chase only so many assets. We also saw this in 2022.

So how do you think this will play out ? Will QE help avoid a recession and improve the labor market ? Will it cause bad inflation or even stagflation? Is this a situation where “don’t fight the fed” is finally wrong ?