Do you think that quantitative easing isn’t going to be an issue much longer and stock prices will be more in line with the markets?
Now, the FED is in a phase of "quantitative tightening." At its peak it held more than $4 trillion in U.S. government bonds and mortgage-backed securities. A few years ago it began reducing its holdings in those assets, and is now off-loading them at the rate of $50 billion per month.
THIS -- not a silly 0.25% increase in the FED discount rate -- is what is driving the correction in the market.