Interesting that you mentioned QE when actually what is happening now is the opposite which is QT (quantitative tightening) along with rising rates, hence double whammy effect. When debt issues mature, the Fed is actually taking liquidity out of the system because the economy is strong. And the Fed is raising rates in order to build up ammunition or capacity to deploy monetary policy (aka rate easing) down the road when a crisis emerges. When rates easing is no longer available, then they can undertake QE. So we are going into an environment when rates will be inching higher and bank lending gets tighter (as liquidity reduces)...and we are already seeing this on the local front.
When rates get higher along with QT, companies will have less ability to borrow to do share buy backs which were a strong contributor to the rise in US stock prices.
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