The original post showing the feds balance sheet before they started to unwind all these securities was shown here.
The fed has sold about $150 billion dollars worth of assets.
Most of it was MBS and Notes/Bonds. The updated balance sheet is shown below.
The fed is running the danger of inverting the yield curve. They own zero treasury bills. If they continue on this path, they will most likely cause a recession sometime in the next 2 years. They are unwinding very slowly. However, there will be many unintended consequences to this plan. As of right now, credit markets appear healthy and no signs of stress are present. Signs of excess, yes, but not stress.
Begin to build more of a cash position. When the recession comes, fear will grip the market. Step in calmly and buy when everyone is selling.
There is an old investment saying:
“Buy when there is blood on the streets”.
My response: just make sure you have the cash to buy.