A procyclical monetary policy normalisation is the worst thing that could happen for financial markets

In the United States and the euro zone, we are now going to see a procyclical monetary policy normalisation : the central banks are going to exit their highly expansionary monetary policies at a time when the economy is set to slow. This configuration is the worst thing for equity markets, as they face a rise in interest rates and a slowdown in growth, and therefore probably a sharp fall in PERs. The fall in equity markets will then amplify the fall in demand and in activity.