Hey, I have a question about the market and I figure why not ask the professionals if you dont mind. (heard you on chat with traders). If the fed is buying treasury coupons for 80 billion a month with 5 to 30 year maturity at 0.1% interest rates, what is the affect of this long term? If I’m the house I’m happy to kick the bucket and just borrow more money to solve short term problems. But at what point does it become too much and the tower collapses? The corona ‘recession’ was a blip on the radar on monthly charts across the board, not even close to 2008 or 2000, yet we printed 7x the amount of money, in trillions. So if we don’t have another ’crash’ happening and we are business as usual, what are the damage of printing money? Inflation? Deflation? Hyperinflation? If the fed is raising interest rates (eventually) then for sure we will start a recession, noway we can pay back that amount of money. I am just waiting for the parabolic FOMO rally to start and bring every shoeshine boy and his 2 million tiktok followers into the market and pump every stock available until it exhausts and collapses beyond imagination. Are commission-free trading intentionally advertised to teens/20s something for the market makers to sell off their bags? Liquidity and volume has to be rule #1 in the market right? How far into the future can you plan? What are you guys thinking?
Are you familiar with trend following? My world? Most if not all of your questions can’t be answered in advance.