“Don’t let the complacent stock-market reaction this week fool you, quantitative tightening is a huge deal. It’s the biggest market game-changer by far since QE’s dawn! Starting to reverse QE via QT radically alters market dynamics going forward. Like a freight train just starting to move, it doesn’t look scary to traders yet. But once that QT train gets barreling at full speed, it’s going to be a havoc-wreaking juggernaut.”
USAGOLD Note: Adam Hamilton, an old friend from our early days on the internet, often finds himself ahead of the crowd. One sentence in his latest caught our eye: “Just hearing a hurricane is coming is radically different than actually living through one.” I would add a thought to the quote just above in conjunction with the hurricane analogy: Markets have been known to anticipate just like some people will anticipate and prepare for a hurricane. It might not take the juggernaut moving at full speed to move pricing in stocks, bonds, gold and silver. In this scenario, professional investors and hedge funds will likely lead the way, and that is where most of the pricing power resides. . . . .