If you look at the past QE / QT cycle they are timed almost perfectly with bull and bear markets.
You could argue a certain pricing in and that it happens before but right now we are just starting and inflation is stil extremly high. If stocks would bottom out and go up/rally that would just give the FED more than enough time and room for being even more hawkish and continue it's hikening and tightening cycle til whenever until stocks seriously collapse even more.
Stocks continue to dump -> Inflation may normalise and FED will again step in to stop a collapse
Stocks bottom out here and we go sideways/up -> FED has no urgency to step in and they will continue everything until whenever which will ultimately lead to a dump again since they won't need to stop if everything is going great
Anyone has any arguments against this theory?
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