June 1, 2022

By Nigam Arora & Dr. Natasha Arora

To gain an edge, this is what you need to know today.

Quantitative Tightening

Please click here for a chart of the Federal Reserve’s balance sheet.

Note the following:

• The chart shows the Fed’s balance sheet ballooning to about $9 trillion.  In plain English, the balance sheet is a fancy way of describing money printing.
• The chart shows the correlation between the Fed’s balance sheet and Nasdaq 100.
• The chart shows that the Federal Reserve’s balance sheet was under $1 trillion before the financial crisis of 2008.  In 2008, most investors lost one-half or more of the value of their portfolios.