📊Is the market wealthy? Why not buy?
--Let's discuss a few data points👇
Let's talk about the balance sheet situation after the Federal Reserve stopped #QT #tapering on December 1.
Sampling from November 28 and December 4, which are just before and after the stopping of QT on December 1, is representative.
Data comparison:
👉Water level line--Reserve indicator: 2,858,284m, decreased by 38,302m.
This round, the market should not consider the early water level line indicator, which should be appropriately raised, as it has not reached the warning line.
👉Corresponding 💰
--Securities holdings: 6,246,203m, decreased by 10,099m
After all, QT has just stopped, and it remains to be seen.
👉Temporary water source--Repurchase agreements: 17,637m, increased by 14,122m
Understand this as an emergency rescue team; if QE is not initiated in the short term (a few months), the market's means will be various short- and long-term rescue teams and fancy rescue teams.
👉Dormant money--Reverse repurchase agreements: 341,306m, increased by 13,048m
Tools like money market funds that deposit cash into the Federal Reserve, and their growth will absorb market liquidity.
There is an urgent desire to switch the chat content to specific target analysis, but alas, when the brakes are applied and turned around, it has always been like this; the market is fragile, so let’s maintain attention for now.
Current liquidity does not indicate much when financial policies change, but from the data, the warnings from JPMorgan and the New York Bank are still ringing in our ears. The liquidity patchwork has continued into December, which can be considered “safe but with surprises.”
