RE:Fed to unwind 4.5 trillion balance sheetKikazztrader7 wrote: Unwinding the balance sheet is significant both because of its sheer size and the impact it could have on markets, as Fed members including Chair Janet Yellen have indicated that the move itself would amount to a rate hike. "At some point, they have to lower it, but I don't think we'll ever see it back below $1 trillion," said Myles Clouston, senior director at Nasdaq Advisory Services. He also noted that some Fed officials had hinted earlier at lowering the balance sheet, "so this shouldn't be a surprise for investors." The minutes also showed the central bank was concerned the stock market may be overvalued. If they do this the stock market could have a significant correction. It would be good to have cash in hand because as soon as the market starts crashing hard, the Fed will step right back in hand over fist with fresh cash to inject into the market. Easily predictable market will shoot right back up.
If people think that the TSX will rise as the DOW comes crashing down....oooooh boy!