Stocks would be bullish if the Fed voted to tighten its quantitative tightening plans.

Good morning. You are welcome back from the weekend. Max Adams, senior editor. 

Although interest rates are the focus of attention right now, there are many other Fed moves happening in the background that investors should be aware. 

We’re going to be looking at something that could prove to be a major bullish driver for stocks in the next year. We are referring to QT. It’s not quantitative tightening. 

Let’s take a look at what’s happening.

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1. Remember the Fed’s enormous balance sheet. Remember quantitative tightening? It seems that it isn’t given enough attention in the midst of all the talk about interest rate rises, but Recall that the US central banking began last month to reduce its $9 trillion balance sheetIn a double-whammy of monetary tightening and aggressive rate increases, it is a highly feared combination. 

Just like how investors are praying and hoping for a Fed pivot to save their failing portfolios, A pivot on the balance-sheet front might also be a boonAccording to Bank of America, stocks are eligible 

Although rate increases are tightening conditions, and taking some money out of it, the Fed’s quantitative tightening of $95 billion per month could cause market disruptions by cutting off large liquidity sources. 

BofA’s Michael Hartnett stated that the central banking is “petrified”This is due to a strong negative market reaction to the change in liquidity conditions. Any sign of stress could cause it to “tinker”.Its plans for reducing its balance sheet.

BofA claims that quantitative tinkering (i.e. Bullish developments include accelerating or even pausing the balance sheet reduction. 

It wouldn’t end the stock-market pain.The bank hasn’t seen any sign of investors giving up, despite them having poured $9 billion into stocks over the past week. The market bottom won’t be reached unless investors give up, and there will be more volatility. 

“There is no final capitulation of equity flows,” Hartnett said. “We’re bearish despite ubiquitous bear sentiment.”

When does the Fed stop raising rates and reducing its balance sheet? Email madams@insider.com. 

Other news:

2. Dow and S&P futures are up early Monday, The Nasdaq, however, isn’t as strong as Alibaba. Xi’s weekend Power playAlso, Hong Kong stock prices fell to a 14 year low These are the most recent market movements.

3. Earnings on deck:Logitech International and Discover Financial Services are all available at Logitech International. reporting. 

4. Here are some ways you can protect your portfolio from higher rates and inflation. Goldman Sachs describes how investors can approach all sectors of the market, as macro volatility hammers stocks. Find the bank’s top tips right here. 

5. Housing market will continue to decline faster. The effect of rising rates on the economy is still not fully understood. According to Goldman Sachs, this is true. According to Goldman Sachs, last week’s note stated that September home sales data failed to capture the recent increase in mortgage rates. See the complete view. 

6. Russia could defy a G7 plan that would limit oil prices. A Treasury official said to Reuters, that the current focus is to minimize self-harm caused to Western countries by sanctions on Russian energy. Here’s how Russia might still be able to sell 90% of its crude oil once the cap is lifted. 

7. Jeremy Siegel claimed that the Fed is “playing in fire”. Interview with CNBC: Friday’s interview with Wharton professor, The Wharton Professor stated that the US central Bank is pushing too hard with its rate hikes. Siegel however, says that he still prefers stocks to bonds.   

8. An investor in real estate who is financially independent thanks to his 25-unit portfolio shares his top tips. An ex-police officer managed to build a portfolio of income-generating properties within four years, with little knowledge of investing in real estate. This is his top tip for novice investors who want to enter the property market.

9. This is where stock market investors need to be when strong rallies begin. Nationwide Funds, which is worth $74 billion, has a research chief who says that there’s good reason to be optimistic despite macro volatility. These are his top three picks for sectors with the greatest upside potential for any coming rally. 

10. Snap fell on Friday. Following poor earnings results in the third quarter, shares fell 28%. The earnings of the company sparked concerns about weakness in future tech earnings from major names like Meta or Alphabet, which are due out this week. Check out the most recent news here. 

You can keep up to date with all the market news throughout the day by visiting www.markets.com The Refresh by InsiderA dynamic audio news brief from Insider. Listen here.

Max Adams, New York. Comments or tips? Email madams@insider.com. 

Hallam Bullock edited the text@hallam_bullock) in London.