Killik Explains: How Quantitative Tightening (QT) may impact investors

Central Banks are threatening to throw monetary policy into reverse gear to fend off inflation. Tim Bennett looks at how and asks what it could mean for investors.

[@joshuaallen7885]

Great video and visual representation.

[@In-Nutshell]

4 Years later, we're approaching the largest QT in the US history

[@guillaumerivest3057]

Immensely actual! (May 2022)

[@Rowan126]

Watching in 2022 shows how these things are in cycles...

[@missinformed4269]

Great and very clear presentation.

[@CVsnaredevil]

Thanks for the video. Very helpful

[@conradobugayong5917]

Thank you, great explanation.

[@AnirudhVenkateshAnitroK]

A very concise video that explains the topic in an intuitive manner. Thank you for this! I have a little trouble understanding how the government manages debt reissuance though and how this drains the liquidity out of the system. Can someone clarify this?

[@bigjakex]

great presentation, learned a lot. even more applicable today

[@r.s.334]

Well done, sir.

[@MikalSassou0524]

thank you! well explained

[@Pardaillan81]

Thank you. Very useful information here. I have a question though. I can understand why the central banks use bonds during the QE-QT cycle. But why on earth are they buying shares?

[@jaredyoung5353]

To help the rich get richer.

[@danielcheong7179]

they will sell those shares back to the market and reduce the MB of the economy same way instead of letting bonds mature they could sell the bonds before they mature back to the market so both ways cash goes back to the feds and hence reducing your MB and slowing down the economy

[@ibrahimpatel691]

The Bank of England sold £750m of gilts/bonds today. Historic moment. Interesting times ahead.

[@dss3057]

Cheers

[@fruitgrapepwnage]

So basically QT is the fed selling the bonds? If yes, what happens to the cash received?

[@w.o.jackson8432]

It gets deleted out of thin air. The fed printeth, and the fed taketh away.

[@hengbuntheng1977]

QT It mean that lower currency then QE End?

[@cronstrubzo]

very glad someone explains it simply for the low iq mass such as myself

[@hovno964]

I am really interested in consequence of QT in 2022... FED put so much liquidity in system and if he take it it will be for some companies and individuals very hard.

[@jaybartgis5148]

That's just so crazy and foreign to hear how British mortgages work to Americans. In our system, it's mostly fixed rates because the whole point is to hedge against the uncertainty of the future. So what's even the point of getting a British style mortgage?

[@BitterLime90]

I have no idea what he means by canceling a matured bond, completely confused there.

[@KillikFinanceVideos]

It just means allowing the bond to mature and offering nothing to replace it by way of a new version of the same bond or a similar bond that will broadly replicate its cash flow profile.

[@BitterLime90]

@@KillikFinanceVideos Thank you for the explanation.

[@MatthewBester]

Well, we have arrived. It looks like Andrew Bailey is gearing up for QT.

[@moneymaker2024]

3:40

[@kyks6771]

Some tuning for global finance, et voilà 🥳

[@dandun30]

qe 4 next year

[@wpleary2]

A year later, it is definitely not like watching paint dry. :)

[@guypodzorski1017]

So I think Cash is king in a QT environment, but what if in that process the value of cash goes down? Deflation, recession, then hyper inflation to devalue the value of all these cash horders. I still like real assets.

[@eduuux1]

using gold to hedge against a possible USD/EUR crash may be a good solution.

[@coreypolitino3410]

Bitcoin

[@jaybartgis5148]

@@eduuux1 how much gold do you have on hand 3 years later bro? Lol

[@Chiszle]

This sort of advice tends to come years too soon.