QE ≠ STOCKS UP AND QT ≠ STOCKS DOWN

The 'tourist pushes back on conventional thinking about QE and QT

There is considerable debate about whether quantitative easing causes risk assets to rise. Some argue that QE is nothing more than a balance sheet swap, with the Federal Reserve taking longer-dated government liabilities and replacing them with bank reserves. I understand their argument, but after years of staring at the market, I have long since accept…