Monetary policy, corporate profit and house prices

What is it about?

Both corporate profits and house prices in the US are explained by monetary policy. That explains why the move together over time. More money in the economy leads to more spending on assets, which pushes asset prices up.

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Why is it important?

It would also explain what will happen as the FED continues to tighten monetary policy, i.e., less money and credit and higher interest rate, both corporate profits and asset prices gradually decline.