Stocks closed June with one of the largest corrections since 2008. Bonds and equities are falling in unison, driven by rate hikes and normalization of monetary policy.

However, there is no such real normalization.

The balance sheet of the main central banks has barely moved and remains at all-time highs according to Bloomberg. The ECB continues to ignore the highest inflation rate in the eurozone since the early 90s by keeping negative rates. The Federal Reserve rate hikes have been more aggressive, but it is still injecting billions of dollars in the reverse repo market and monetary aggregates remain excessive.

In the United States, money supply growth (M2) is still much higher than in the quantitative easing years. M2 money supply has risen to 21.8 trillion dollars and yearly change shows a rise of 1.3 trillion dollars, which is more than double the annual figure of the expansion phase of 2008-2011. Money supply (M2) annual growth in the United States was 6.5% in May, 6.6% in the eurozone. Global monetary growth in May was 9.9%, all figures according to Yardeni Research. In the eurozone money supply growth is higher than in the middle of the so-called "Draghi bazooka", the famous "whatever it takes".

Central banks have gone from "whatever it takes" to "no matter what".