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This marketing document has been issued by Bank Syz Ltd. It is not intended for distribution to, publication, provision or use by individuals or legal entities that are citizens of or reside in a state, country or jurisdiction in which applicable laws and regulations prohibit its distribution, publication, provision or use. It is not directed to any person or entity to whom it would be illegal to send such marketing material. This document is intended for informational purposes only and should not be construed as an offer, solicitation or recommendation for the subscription, purchase, sale or safekeeping of any security or financial instrument or for the engagement in any other transaction, as the provision of any investment advice or service, or as a contractual document. Nothing in this document constitutes an investment, legal, tax or accounting advice or a representation that any investment or strategy is suitable or appropriate for an investor's particular and individual circumstances, nor does it constitute a personalized investment advice for any investor. This document reflects the information, opinions and comments of Bank Syz Ltd. as of the date of its publication, which are subject to change without notice. The opinions and comments of the authors in this document reflect their current views and may not coincide with those of other Syz Group entities or third parties, which may have reached different conclusions. The market valuations, terms and calculations contained herein are estimates only. The information provided comes from sources deemed reliable, but Bank Syz Ltd. does not guarantee its completeness, accuracy, reliability and actuality. Past performance gives no indication of nor guarantees current or future results. Bank Syz Ltd. accepts no liability for any loss arising from the use of this document.
The Federal Reserve announced it will end Quantitative Tightening (QT) and begin Quantitative Easing (QE) again — calling it a “technical adjustment.” But let’s be honest: That’s easing. And easing into this environment is something we’ve rarely seen in history. Let’s unpack what this means 👇 📉 Normally, QE happens during crisis. Low valuations, weak growth, wide credit spreads, and falling inflation. QE was meant to stimulate into a depression. 📈 This time is different. Stocks are near record highs AI and tech valuations are in bubble territory Unemployment is near record lows Inflation is still above target Credit and liquidity are abundant So if the Fed starts buying bonds and adding liquidity now — while deficits stay huge — it’s essentially monetizing government debt during a boom. That’s not “technical.” That’s a classic late-stage Big Debt Cycle move — where monetary and fiscal policy collide to keep the system afloat. 🧩 The mechanics: QE pushes real yields down Financial assets inflate (especially tech & gold) Wealth gaps widen Inflation reawakens — eventually forcing the Fed to tighten again ⚠️ And that’s when bubbles pop. So yes — the Fed may be stimulating into strength, not weakness. Into a bubble, not a bust. Into risk, not safety. This is the kind of pivot that separates traders from historians.
The Fed cut rates ✅ Ended QT ✅ A few dissenters ✅ Markets? Totally unfazed. S&P flat. Yields steady. Commodities and crypto asleep. And then — 2:35 PM. Powell drops one line that flips everything: “December cut is not for sure, far from it.” Boom 💥 Rate-cut odds crash from 95% → 65% in minutes. Stocks wobble. Yields jump. Traders scramble. Moral of the story? In markets, boredom never lasts long — and one sentence from the Fed can move trillions.
Moving from restrictive → supportive balance sheet policy. This is not QE, but it is definitely a positive development that provides a mild liquidity tailwind for markets. Source: Joe Consorti @JoeConsorti
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