The Federal Reserve's balance sheet may continue to decline even after Quantitative Tightening (QT) officially ends on December 1st, similar to the 2019 scenario where the balance sheet dropped post-QT due to settlement delays. Investors should not expect an immediate increase in liquidity, as the balance sheet might not show an upward trend until early 2026. This suggests a potentially prolonged period of tighter financial conditions, which could impact asset prices across various markets.