QQQ: Bubbles Don’t Burst When The Fed Cuts


symbolic picture of a stock market bubble with a parabolic chart entering a recession with finishing its market cycle with a financial tsunami, copy space on the right side.

Kris Hoobaer

Interest rate normalization

Actually, bubbles do deflate as the Fed aggressively cuts interest rates.

First, bubbles inflate during periods of loose monetary policy, usually following a certain theme that justifies unrealistic valuations. Next, the Fed starts to tighten monetary policy by increasing

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