Explaining Why Interest Rates and Inflation Affect the Stock Market

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  • เผยแพร่เมื่อ 14 พ.ย. 2024

ความคิดเห็น • 70

  • @nycto16
    @nycto16 2 ปีที่แล้ว +9

    Watching this as a finance student makes easier to understand... this topic is interesting.

  • @ChiNguyen-bb3qn
    @ChiNguyen-bb3qn 2 ปีที่แล้ว +3

    Good content! My whole Uni year was summed up in one video. Thanks a lot for this! Can't wait for your next video!

  • @lgordo623
    @lgordo623 2 ปีที่แล้ว +2

    10x better than the course we were getting in BBA days. Underrated channel for sure!

  • @lorenzo4103
    @lorenzo4103 2 ปีที่แล้ว +23

    Please make a LBO modeling video, that would be very helpful! And maybe even Power point for investment banking

  • @alexandros6664
    @alexandros6664 2 ปีที่แล้ว +2

    Thanks for the insight Ben! Always very educating visiting this channel!

  • @tilarmeister
    @tilarmeister 2 ปีที่แล้ว +2

    Seeing you do out everything vs taking answers as it is really does make the diff. Am able to internalize and understand the rationale better. Really thank you for amazing job Ben!

  • @joaoreismota1967
    @joaoreismota1967 2 ปีที่แล้ว +4

    Great vídeo! simple and insightfull
    I am currently doing a DCF model and its cool to see how these topics can overlap

  • @jethrojacinto2798
    @jethrojacinto2798 2 ปีที่แล้ว +5

    This is a great 101 explanation for the uninitiated to what's going on with the current climate of the economy.

  • @yuenchinchon9231
    @yuenchinchon9231 2 ปีที่แล้ว +1

    Hey Ben, a big shoutout! Would love to watch more of this type of video. This is super helpful ;)

  • @mtheg711
    @mtheg711 2 ปีที่แล้ว +5

    Thank you! Needed this!

    • @rareliquid
      @rareliquid  2 ปีที่แล้ว

      Glad it was helpful!

  • @dameeeee
    @dameeeee 2 ปีที่แล้ว +9

    Thanks for this very insightful lesson Ben. You’re amazing!

    • @rareliquid
      @rareliquid  2 ปีที่แล้ว

      Glad it was helpful!

  • @furypenguinz
    @furypenguinz 2 ปีที่แล้ว +1

    Very insightful demonstration from a real professional :D

  • @redbabiano
    @redbabiano 2 ปีที่แล้ว +1

    This is very insightful, Ben. Thanks for sharing your expertise!

  • @Jackmunropickleball
    @Jackmunropickleball 2 ปีที่แล้ว +1

    With your background in Investment banking, a video about how to use excel efficiently with all of the short cuts and best ways to work it Would be awesome. I know there are videos out there, but with your background and investment banking, it would be priceless to younger kids like me

  • @katele5407
    @katele5407 2 ปีที่แล้ว +1

    Your excel skill is excellent. I’m working on excel and a few programming languages, along with Financial Economics degree at school. Thank you for the amazing video.

  • @tilloberto
    @tilloberto 2 ปีที่แล้ว +7

    Great video to show the impact of a higher WACC. I am wondering why investment banks don't consider the 10 year yield curve to make cost of debt predictions even more accurate and give more dynamic to WACC. From my experience in Germany, when businesses want to repay their loans early they have to pay a fee and one way to calculate the fee is to see how much risk-free (yield curve figures for the next years) interest the bank would lose for the remaining term. And that's the fee business would pay to repay loans early. So, why don't IBs do the same?

    • @akmalsheikh149
      @akmalsheikh149 4 หลายเดือนก่อน

      explain anyone please?

  • @John-t1s5r
    @John-t1s5r 2 ปีที่แล้ว

    As a finance students, this is very helpful and intuitive. Thanks you.

  • @Stanleytan0702
    @Stanleytan0702 2 ปีที่แล้ว

    Good work ben! I love it! Pls continue what you doing ✌🏻✌🏻✌🏻

  • @barryaherne215
    @barryaherne215 2 ปีที่แล้ว +10

    Really insightful video, Ben. Love hearing your thoughts on all things stocks/economy, and can't wait for the next one mid-week!

    • @rareliquid
      @rareliquid  2 ปีที่แล้ว

      Glad you enjoyed it!

  • @maranathaahenkorah2139
    @maranathaahenkorah2139 2 ปีที่แล้ว

    This is solid! Thanks Ben!

  • @yiji5561
    @yiji5561 11 หลายเดือนก่อน +1

    Clean and solid !

  • @kevinyoung4u
    @kevinyoung4u 2 ปีที่แล้ว +1

    This is a great video. Technical detailed, and perfectly explained why most of tech stocks are down 30-40%. I did understand that interest rate can affect the stock market, but didn't know it is this much. Thanks for building the model and let the numbers explain.

  • @longnpp7720
    @longnpp7720 2 ปีที่แล้ว

    Love the video, thanks!!

  • @LendrainResearch
    @LendrainResearch 2 ปีที่แล้ว +1

    Im quite new to the stock market and since the discussions about raising interests last fall i always wondered how the yields technically effect stock prices. Because im studying aero space engineering and have no financial background at all i always searched for a technically explanation. I build some dcf models on your tutorials for some of my stocks my own and figured out the effect that the wacc has. But this video is a very nice fast break down to conclude the main parts that go into the valuation of stocks after raising interests

  • @paparazi97
    @paparazi97 2 ปีที่แล้ว +1

    Interesting, thanks for sharing.

    • @rareliquid
      @rareliquid  2 ปีที่แล้ว

      Thanks for watching!

  • @Rudy1150
    @Rudy1150 2 ปีที่แล้ว +1

    thanks for the education. I only took 1 finance class and 1 macro class in college so this helped. The spam comments here are annoying. I look forward to the next video on this topic. Love this direction.

    • @rareliquid
      @rareliquid  2 ปีที่แล้ว

      Glad it was helpful!

  • @williamchristopher8046
    @williamchristopher8046 2 ปีที่แล้ว

    Great video thanks a lot

  • @morperez4542
    @morperez4542 2 ปีที่แล้ว +1

    This is an amazing video.. so informative

    • @rareliquid
      @rareliquid  2 ปีที่แล้ว

      Glad it was helpful!

  • @codymccrystal8835
    @codymccrystal8835 2 ปีที่แล้ว

    I have a question it may seem silly but I specialise in derivatives and financial mathematics so my knowledge here isn't great. I would greatly appreciate some insight. I love your videos.
    Market risk premium = return on market - Risk-free rate
    So therefore an increase in risk-free rate would result in a decrease in MRP - ceteris paribus - surely, no? Rather than what state in the scenario analysis above where there is a 2% increase to rates.

  • @stevenguyen7479
    @stevenguyen7479 2 ปีที่แล้ว +2

    Thx man

  • @anotherroundapp
    @anotherroundapp 2 ปีที่แล้ว +2

    As an investment advisor this education is refreshing to see in a world ruled by fear mongering on television . Good job 👍

  • @pricetagcitrus
    @pricetagcitrus 2 ปีที่แล้ว

    At 24:00 what do you mean stocks can’t keep going down? Do you mean that there will be a bear market rally or dead cat bounce? When do you think we can finally buy the dip? Eoy when the fed starts cutting rates again?

  • @20775046
    @20775046 2 ปีที่แล้ว +1

    Please show us you're keyboard shortcuts you use! Efficiency matters!

    • @rareliquid
      @rareliquid  2 ปีที่แล้ว

      will be making an excel video soon!

  • @SlashnKashmir
    @SlashnKashmir 2 ปีที่แล้ว +1

    Great content thank you

    • @rareliquid
      @rareliquid  2 ปีที่แล้ว

      Glad you enjoyed it

  • @kevinsuh5313
    @kevinsuh5313 2 ปีที่แล้ว

    Thank you finance daddy!

  • @davisliuSF
    @davisliuSF 2 ปีที่แล้ว

    For future reference, Alt + = will autosum everything above your cell! No need to fumble around with typing out the formula.

  • @valueray
    @valueray 2 ปีที่แล้ว

    can u explain why u use WACC instead of CAPM to discount back? isnt CAPM the target/goal you want to reach and therefor a better discount back value?

  • @bcotto1100
    @bcotto1100 2 ปีที่แล้ว

    Would you consider doing an excel tutorial series?

  • @nev6250
    @nev6250 2 ปีที่แล้ว

    Hey ben video request here. Why not do a Vlog while your stay at korea? Just to freshen up a bit

  • @mhb11
    @mhb11 2 ปีที่แล้ว

    Interest rates keep changing over the life of a large corporation. However, we assume one standard rate for DCF. Is this realistic? What rate do you guys assume in practice?

  • @narutokun616
    @narutokun616 2 ปีที่แล้ว

    Hi Ben, love your content as always. Do you think you'll go into building a cash flow waterfall model for a multi-tranche debt instrument?

    • @rareliquid
      @rareliquid  2 ปีที่แล้ว

      i dunno lol we'll see

  • @vandydandy2697
    @vandydandy2697 2 ปีที่แล้ว

    Someone told me to dump all 1100 shares of Nio after Hu Jintao was kicked out of the Ccp. Should I sell Nio ?

  • @Teslabull
    @Teslabull 2 ปีที่แล้ว

    I guess the DCF is using a fixed rate to project cash flow, but in real-world the rate will change all the time.

  • @MuhammadSaif-yp4tr
    @MuhammadSaif-yp4tr 2 ปีที่แล้ว

    Can you pls also share the excel file use? Like a link to google drive is attached in the description of the video.
    Thanks alot

  • @mayacho4910
    @mayacho4910 2 ปีที่แล้ว +71

    I know it's possible, my sister always get 40K every week, I would appreciate if anyone could show me how to go about my trading journey. So i could do the same.

    • @theresagarcia1218
      @theresagarcia1218 2 ปีที่แล้ว

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    • @theresagarcia1218
      @theresagarcia1218 2 ปีที่แล้ว

      It's all thanks to 'PRISCILLA DIANE AIVAZIAN" her trading skills is the best I can think of now.

    • @mayacho4910
      @mayacho4910 2 ปีที่แล้ว

      @@theresagarcia1218Oh please, how can someone get to speak with PRISCILLA DIANE AIVAZIAN?

    • @theresagarcia1218
      @theresagarcia1218 2 ปีที่แล้ว

      @@mayacho4910She's always active on her page, look her name up.

    • @mariahhayes5089
      @mariahhayes5089 2 ปีที่แล้ว

      'I have heard a lot about trading and investment with PRISCILLA DIANE AIVAZIAN, how good she is and how she has helped people through investment.

  • @harryspeaks
    @harryspeaks 2 ปีที่แล้ว

    You know he's a real analyst when he uses excel to explain everything LOL

  • @tareqm9314
    @tareqm9314 ปีที่แล้ว

    This video was kinda WACC, jk lol. That was very informative thanks Ben!

  • @Caparzo_11
    @Caparzo_11 6 หลายเดือนก่อน

    There was nothing new in this video .

  • @aleksrussian
    @aleksrussian 2 ปีที่แล้ว

    Let's get greedy by using one of my favorite Omaha recipes. GOOGL 1850, MSFT 190, FB 150, AAPL 122, NVDA 122, TSM 65.