Featured

THE FED JUST HIKED RATES | Major Changes Explained



Published
Go to http://public.com/graham and use code GRAHAM and you’ll receive a randomized free stock worth up to $1000 once you open an account! Here is how you can QUIT YOUR JOB with Passive Income - Enjoy! Add me on Instagram: GPStephan

GET MY WEEKLY EMAIL MARKET RECAP NEWSLETTER: http://grahamstephan.com/newsletter

NEW BANKROLL COFFEE NOW FOR SALE: http://www.bankrollcoffee.com

DOWNLOAD MY NEW FINANCIAL APP: https://confirmsubscription.com/h/y/738B303D39689CFB

JOIN THE WEEKLY MENTORSHIP - https://the-real-estate-agent-academy.teachable.com/p/graham-stephan-mentorship-program/

THE NEW PODCAST: https://www.youtube.com/channel/UCMSYZVlQmyG8_2MkIKzg0kw

The YouTube Creator Academy:
Learn EXACTLY how to get your first 1000 subscribers on YouTube, rank videos on the front page of searches, grow your following, and turn that into another income source: https://the-real-estate-agent-academy.teachable.com/p/the-youtube-creator-academy/?product_id=1010756&coupon_code=100OFF - $100 OFF WITH CODE 100OFF

THE FEDERAL RESERVE JUST RAISED RATES

Savings Accounts:
Now that the Federal Reserve is beginning to raise rates, savings accounts will ONCE AGAIN start to pay you a respectable amount of interest. For example, Synchrony Bank just raised their CD Rates to 1%…Nationwide is gearing up to offer 2.5% to their customers…and, many more are expected to follow.

The Stock Market:
Recent data just found that “the S&P 500 has ONLY HAD TWO losing years since 1990 when the Fed was raising interest rates: a 9% decline in 2000 and a 4% drop in 2018.” and….even though it seems like a direct correlation that high interest rates are automatically BAD….it’s not so clear cut.

Since the 1960’s…even throughout rate increases and decreases…the stock market has continued to trend upwards. If we then taken an even closer look since 2017…we can see that, throughout several rate hikes…the market defied the odds…and kept going up!

The Financial Samurai also found that The SP500 has, on average, gained 20% in a rising interest rate period since 1971 - which, can often span over several years. He also says, in order for that to be true…the Federal Reserve must raise rates SLOWLY, and effectively communicate their intentions to the market so investors don’t panic…which, so far, in 2022…they’ve done that.
https://www.financialsamurai.com/historical-stock-market-performance-when-interest-rates-rise/

Home Real Estate Prices:
If we look back historically, we can see that, since 1945 - housing prices continued climbing, right alongside interest rates. After that, rates dropped…and home prices continued to climb even further. It was also found that, OVERALL…a change in interest rates hasn’t substantially affected housing values on a large scale…meaning that…MOST LIKELY - there are other factors that have an EVEN BIGGER impact on prices.

Robert Shiller himself, king of the Shiller Price Index…was quoted as saying: "There is not a tight fit at all between the two: high mortgage rates do not translate automatically into low home prices."

All of that is to say that - even though higher interest rates DIRECTLY impact home affordability - other factors, like local market conditions, demand, inventory, inflation, tax deductions, population changes, new construction, and the overall health of the economy play just as big of a factor…so, rising rates ALONE won’t do enough to cause prices to decline.

The Cost Of Debt:
Revolving balances have what’s known as a “variable interest rate,” meaning - their interest payment, in some part, correlated to the prime rate, which is influenced by the federal reserve. When that interest rate goes UP - credit cards charge MORE as a result…and, one report warns that your interest rate may begin to go up as soon as now.

My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB

For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at [email protected]

Disclosure: This is a paid endorsement for Open To The Public Investing, member FINRA &SIPC. Not investment advice. Cryptocurrency trading offered by Apex Crypto LLC. Other fees may apply. Full terms, conditions, and disclosures at www.public.com/free. Investing involves risk of loss.

*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. This is not investment advice. Public Offer valid for U.S. residents 18+ and subject to account approval. There may be other fees associated with trading. See Public.com/disclosures/
Category
Cryptocurrencies
Be the first to comment