Just so we're clear, the Fed printed $3T, bought stonks and now announce they will dump $8.3T of assets on the market

It appears that we're living through a historical-scale, unprecedented pump and dump orchestrated by the Fed.

All this information is generally accessible, and however I look at it, this seems to be the only reasonable way to interpret it.

So, for the last couple of years, the Fed has been printing US dollars out of their ass and injecting it into the economy in different ways. Among others, by increasing the balance sheet — buying bonds, assets and securities.

Now that the Fed balance sheet approaches $9T, they announce an intention to start reducing it — by selling the assets back to the market.

Last time it took the Federal Reserve 2 years (2017-2019) to shrink their balance sheet and switch to accumulating again (2019-2021). So now the markets are bracing for a period when the Fed won't pump the market anymore and will do quite the opposite.

And, mind you, all that was done with money they printed out of thin air...

To me, this looks like the "dump" part of a pump and dump. And the markets are preparing for it accordingly. Crypto being so mainstream and all follows the global economic trends closely and even overreacts at times.

No one knows what will happen next, but to me this is the time to reevaluate portfolio and make sure you'll be fine either way this plays out.