It is a government inspired crisis this time. The Treasury have to sell Bonds to cover the trade imbalance and the government spending imbalance. In order to sell them they have to raise interest rates and the old long-term, low risk, low interest, AAA investments (including Treasury Bonds), held by the banks (often due to government regulatory policy), become next to worthless. The next milestone is the 15th when the government issue a new batch of Bonds. I have approximately 350k stagnant in my portfolio that needs growth. What is the best way to take advantage of this downturn?
Every day we have a new problem. It's the new normal. At first we thought it was a crisis, now we know it's a new normal and we have to adapt. this year will be a year of severe economic pain all over the nation
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $$275k to $850K...
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? I'm in dire need of proper portfolio allocation.
Investors should use their money continuously, in my opinion, especially In 2025, the market will start to diversify even further. Given recent stock success, it becomes sense to invest my $460k portfolio in conclusion that the stock market is the best intelligent investment accessible. Certainly, others agree.
I think the smartest way to go is to spread out your investments. By putting your money into different asset classes like bonds, real estate, and stocks, you can lower the risk if one part of the market goes bad.
I totally agree with you. I started out investing on my own too and lost quite a bit. After the 2020 crash, I managed to pull out about $160k. I then invested that money with an analyst, and in just seven months, I made almost $580,000. It's amazing how having the right guidance can turn things around!
I'm intrigued by this. I've searched for financial advisors online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
My CFA Laurelyn Gross Pohlmeier, a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market
I appreciate you sharing. Curiously, I looked up her complete name online, and after a little scrolling, her website appeared. Before approaching her, I conducted my research and reviewed her qualifications. Many thanks once again.
A weak dollar can signal an economic downturn, making me to ponder on what are the best possible ways to hedge against inflation, and I've overheard people say inflation is a money-eater thus worried about my savings around $200k
The stock market is a way to hedge against inflation. Most notably amidst recession, investors need to understand where and how to allocate funds to hedge against inflation and still make profits.
in my opinion, the impact of the rise or fall of the U.S. dollar on investments is multi-faceted but learning how to grow your money has never been easier than now that you can explore and experience a truly diverse marketplace passively by using a well-performing portfolio-advisor.
Exactly why i enjoy my day to day market decisions being guided by a portfolio-coach, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/ analvsis they have, it's near impossible to not outperform, been using a portfolio-coach for over 2years+ and I've netted over 400k.
'Carol Vivian Constable, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
Really happy to have understood everything, all the terms and technicalities, in the video. I thought doing a bachelor’s degree in economics was a wast of my time but in these cases…it shows me it was worth it!
@@3rkid Yeah, his logic was really strange. A 4 year economic degree didn't make him understand these basics but he's proud that it helped him to understand this video today. What??
Despite rising bond yields and falling stock prices, the markets remain uncertain about whether the Federal Reserve will maintain its objective of raising interest rates until inflation is subdued. As I contemplate whether to sell my $401k in equities, what's the most effective strategy for capitalizing on the current downturn in the market?
I advise you to seek professional advice because building a strong financial portfolio is more challenging. Your long-term objectives and budgetary preferences can be catered to in the ideas you get after that.
Accurate asset allocation is crucial. Some use hedging or defensive assets in their portfolio for market downturns. Seeking financial advice is vital. This approach has kept me financially secure for over five years, with a return on investment of nearly $1 million.
When you derive every possible capital investment you could possibly make, the one which is the ‘safest’, is the bond from the country with the strongest government (US). All investments are then analysed to that yard stick. That’s why it’s vital.
I'd watched so many bond-yield-price videos and thought I'd understood it. Till today I know I missed the info at 2:24. I did not know that the "yield goes up" also applied for the existing bonds, as their yield is calculated on the current price (lower) instead of the face value.
If the bond was already issued the yields stay the same but the bond will decrease in price if the yield goes higher and increase in price if the yield goes lower. Which makes since, I would pay a higher price for a better yield. Like buying a bond from 1995 in 2010. You would want that 5 percent apy over 0.1 percent.
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for....
The majority of my holdings ($650K) are Nasdaq, Apple, and Tesla stocks, respectively. I got in early but am undecided whether to sell or purchase back at reduced prices owing to the present market condition.
Focus on two key objectives. First, stay protected by learning when to sell stocks to cut losses and capture profits. Second, prepare to profit when the market turns around.I recommend you seek the guidance a broker or financial advisor.
@@Robertgriffinne Whichever option you choose, be careful to seek advice from a trustworthy investment advisor. I do business with one, and she has helped me get a better handle on the stock/ETF market throughout this upheaval.
@@Natalieneptune469 Hello, how did you handle it? I believe I require an advisor after reading these comments about hiring them. Simply said, I don't want to commit errors that will significantly harm me.
@@Robertgriffinne Susan Agnes Hancock is the analyst/investment-adviser. She has been of great help and her tutelage has brought me to a higher understanding of profit generation. You can look up her name on the net for her page and reach out. Understands the job perfectly
@@Natalieneptune469 This recommendation literally came at the right time, I dipped by $11k in stocks last week alone. Its crazy! I just looked up Susan Agnes Hancock online and researched her accreditation. She seem very proficient & I wrote her detailing my Fin-market goals . Information they say, is power. Thanks for this.
Even if bond yields are rising while stock prices are decreasing, the markets are still skeptical whether the Federal Reserve will stick to its goal to raise interest rates until inflation is under control. As I'm still debating whether to sell my $401k worth of equities, what is the best way to profit from the current down market?
The best market strategy at the moment is working with a respected investing coach. I've been in touch with a coach for a time now, mostly because I lack the depth of understanding and mental toughness to deal with these ongoing market conditions. During this recession, I made about $700k, proving that the market is more complicated than most people think.
@@emiliabucks33 Due to the significant falls, I need advice on how to rebuild my portfolio and develop more successful tactics. Where can I find this coach?
I have stayed away from all of the issues that the erratic market presents. Today, reading, research, patience, and seeking guidance when necessary are the greatest ways to break into the market. I merely copy Dawn Maureen Humphrey, a CFA, whose actions I witnessed on Bloomberg Business News because I am unable to handle my portfolio owing to the nature of my profession. Ever since, everything has been easy.
@@emiliabucks33 Wow! I looked up Dawn Maureen Humphrey complete name online just out of curiosity and was pleasantly surprised by her credentials. Thank you for sharing.
Fed reserve and the treasury is not bothered about stock capital market. They are more concerned about the treasury bond market. They fear the bond market may become dysfunctional and illiquid. Bond yields are one of the important parameter that influences stock market. All stock pundits fail to mention how the bond yields influence stock market. My main concern now is how we are going to achieve all of that given that the market has been a mess for most of the year. I already lost $23,000
@Blayson Quinn I agree. Based on firsthand encounter with a fiduciary counselor KATHERINE DUFFY BURKE, i have $385k in a well diversified portfolio which has grown by 3x with compounding, venturing doesn’t necessarily boil down to money but you also have to be informed, be patient and back it up with good hands
@@RachelBrinkmeier wow thats a huge milestone. Please how can i reckon with such skillset? i want to grow my emergency funds of approximately $57,000 advantageously
@@RachelBrinkmeier I searched for Katherine using her full name and found her webpage, read her resume, education, qualifications and it was really impressive. She is a fiduciary who will act in my best interest. So, I sent a message and I hope she replies soon
Many people are experiencing crash market fatigue and are tired of hearing about the worst, even though it's true. We're slowly being boiled in the pot! I want to diversify my $250K portfolio.
I completely agree. It's not just about the dividends, Diversifying a portfolio can be a smart move, i always advise one gets a professional to help you out.
The issue is most people have the "I want to do it myself mentality" but not equipped enough for a crash, hence get burnt, no offense. In general, Financial Consultants are ideal reps for investing jobs, and at firsthand encounter, since Jan.2020, amidst covid outbreak, my portfolio has yielded massively in ROI, summing up to 7-figures as of today.
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
2:04 "If the economy is doing well, interest rates may go up." So why are stocks going down and why is the news saying future profits are going to go down, as interest rates continue to rise in 2022, if higher rates are supposed to be indicative of a good economy?
Higher rates aren't indicative of a good economy. Productivity, low inflation, and low unemployment are indicators of a good economy. Unfortunately, all those things are tied together so when one goes out of whack it affects the others. Its a balancing act.
Four Economic sectors. Primary, Secondary, Tertiary, Quaternary. Is there a chart or website or channel, that breaks down WHAT time of year each sector is at its strongest? As well as a chart that shows historical data Year by year for each sector performance?
@1:44 coupon is NOT the same as yield. The coupon rate doesn't change for a bond during its lifetime but its yield can and will. That is so Integral to understanding the economics of bonds!
Investing in cryptocurrency is the best way of getting ahead to build wealth, investing remains a priority. The stock market has plenty of opportunities to earn a decent Payouts, with the rights skills and proper understanding of how the market works, i pray that anyone who reads this become successful in life.
Economy Does Well --> Interest Rate Increase to cool inflation --> New Bond Interest Rate Increase to compensate for the predicted Inflation --> Current Bonds (Bonds) decrease in price --> Current Bonds (Bonds) Yield increase
OK...They do not explain why bond yields mimic interest rates. Does this mean that the Fed basically controls bond yields by setting the interest rates? Is it possible that bond yields and interest rates move in opposite directions too?
Bond yields are the minimum yield you can get with theorically "zero risk". So if a company wants to offer a bond, it needs to offer higher yields than the government offers, as there is a higher risk involved. This basic interest rate also has impacts on the costs of borrowing for banks. And if they have to pay more on one side, they will also ask for more in order to offer loans to consumers and corporations. So it is all connected.
Private corporations have to offer higher yields than government bonds in order to attract investors. The difference between a higher yielding, private bond when compared to a government bonds is that the private bond holder can "call back" those bonds at an earlier date so they can save money by issuing a bond at a lower rate. With government bonds, the government can't do that..
The Market have been suffering over the past month, with all the three indexes recording losses in recent weeks. My $400,000 portfolio is down by approximately 20%, any recommendations to scale up my returns before retirement will be highly appreciated.
Find stocks with market-beating yields and shares that at least keep pace with the market for a long term.For a successful long-term strategy | recommend you seek the guidance a broker or financial advisor.
I agree. Based on personal experience working with an investment advisor, I currently have $385k in a well-diversified portfolio that has experienced exponential growth. It's not only about having money to invest in stocks, but you also need to be knowledgeable, persistent, and have strong hands to back it up.
Well this is a great educational video ! Hats off to wsj. But I still don't get how higher bond yields can rise stock prices simultaneously because if cash flows have to be discounted at higher rate it will reduce the value of stocks theoretically right ?
Two factors impact stock prices: 1. discount rate, as you mentioned. 2. changes in cash flow (INCREASE, in this scenario). If the cash flow outweighs the discount rate impact, then stock prices will increase. If the cash flow does not outweigh the discount rate, then stock prices will decrease. Bottom line: stock prices can move either direction, when bond yields rise. p.s. It took me an hour to figure this out, as I had the same question.
Stocks are falling and bond yields are rising, but markets still don’t seem convinced the Federal Reserve will pursue plans to keep increasing interest rates until inflation is under control. I'm still at a crossroads deciding if to liquidate my $117k stocck portfolio, what’s the best way to take advantage of this bear market?
Remember that investing in the stock market carries risks, and it’s important to do your own research and consult with a financial advisor before making any investment decisions.
2:22 “when the price goes down the yield goes up” is she referring to yield based on paying the new price of $922? Eg the coupon is still actually 4% but because the bond only costs $922 now that actually works out at 5%?
Nice to know and learn. Thanks so much for explaining this. It rises the cost of borrowing money, paying a mortgage for a house will be more expensive this year. So basically, for the sake of cooling down inflation the people who are paying for their houses will pay the price? Cheers.
Thanks for the exceptionally interesting video There is one aspect that I don't understand very well though Why the interest paid on short-term bonds is usually higher than that paid on bonds with a ten-year maturity Shouldn't it be the other way around?
Munger and Buffett have both achieved an incredible feat with Berkshire. They've turned thousands to billions, and have made a lot of people wealthy in the process. I really saw the potential of the stock market by reading Berkshire's annual letters. I recently sold my $674k apartment in the Bel Air area and I'm hoping to throw it into the stock market. I just don't want to lose everything.
Most newbies either do not understand the power of compound interest, or are just impatient. For the average Joe, however, I think it is just best to invest in the S&P 500, and just wait, which is reliable, albeit extremely long-- lots of years. Or just use a professional analyst and speed up wealth creation. Most people underestimate the power of the latter.
@@devereauxjnr It's a delicate season now, so you can do little or nothing on your own. Hence I’ll suggest you get yourself a financial expert that can provide you with valuable financial information and assistance
@@AlbertGReene-p8w I actually subscribed for a few trading courses but it didn't help much, been getting suggestions to use a proper financial advisor, how did you go about touching base with your coach?
@@viewfromthehighchairr I absolutely dislike giving such advice because every person's situation is different. However, there are a lot of independent advisors you might look into. "NICOLE DESIREE SIMON" and I have been working together for nearly four years, and she is excellent. You could proceed with her if she satisfies your discretion. I support her.
Except the fact that the FED shouldn't have stopped its interest rate hikes of 2018. They were already late with hiking up the interest rates (but who can blame them, if their pockets are getting sweetened by corps) and now the bubble is so big, that WHEN it bursts, the 2008 recession will look like a walk in the park compared to what's coming.
@@SuperParkerBrothers the housing bubble of 2008 has been part of my MBA thesis. We have also dissected the scale & financial aftermath of the last recession during the MFIN. Trust me, I perfectly understand what happened and have a very good understanding of what is going on now. My comparison to the 2007 was not in the underlying cause but to the scale and damage that the coming recession will have.
@@user-dw1zb3fh5n One could argue that, but what is meant by the bubble bursting is when the overinflated market value (in comparison to the cumulative book value of all the companies) drops extremely quick, over a short period of time, causing a mass sell-off and inevitably dropping far below the book value.
Thanks for the breakdown! A bit off-topic, but I wanted to ask: I have a SafePal wallet with USDT, and I have the seed phrase. (air carpet target dish off jeans toilet sweet piano spoil fruit essay). How should I go about transferring them to Binance?
A 5 min video is not enough to explain this topic.. not to mention when those 5 mins are used poorly. Go watch Ray Dalio "how the economic machine works" thank me later
Stupid comment. This video is specifically discussing bonds. Dalios video is about how the broader economy works. Thus this video is only 5 mins on one subject, Dalios is 30 mins on several subjects.
Thanks for the forecast! A bit off-topic, but I wanted to ask: I have a SafePal wallet with USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). What's the best way to send them to Binance?
We are having a yield here and there is a safe investment and very confident with my accessory yield.There is a fed that will raising it to0. The economy has grow older and it raises well.
Most of that "Inflation" was a) price increase in commodity markets and b) price gouging by the industry. It's not that consumers during COVID lockdowns had consumed more. The working class struggles to survive. How can they create demand? People should watch Chris Martensen's lectures about the bond price death spiral.
So finally we can get the risky and flimsy buyers out of the market. I'm trying to have an affordable life bit dont like to borrow what I cant afford. I need affordability
Never speculate on where and when bonds will make a move. Buy the market in live time. Keep buying the market in live time and it'll all work out. I have a large individual issue muni bond position and I always hold to maturity.
But when the cost of borrowing increases, wouldn't the companies need to increase the price of products to maintain their profit margin, thus more inflation. Honestly confused
Price elasticity is what you’re talking about= How much can a corporation increase the price of a good before people stop buying it. But what we’re seeing so far is that companies have increased the price of goods but people keep buying them, therefore making inflation worse. However, there will be a point where prices increase to such a point that consumers stop buying as much of the product, therefore decreasing demand, therefore helping the supply/demand problem. This would technically help reduce inflation.
Per basic economic theory*, the technical answer is that prices and profit margins (before accounting for interest / taxes) are a function of industry structure/competition, business model / unit economics, and customer value propositions (basically firms will charge as high a price as they can get away with that won’t reduce their overall profits). Capital structure (whether a firm uses debt or equity to finance the firm) will ultimately affect the (after-tax) bottom line but is an independent decision. It is always favorable to use as much debt as the business can support because it boosts equity returns in a tax-advantaged way. If interest rates rise, the amount of debt a business can theoretically support is lower and they will work to reduce their debt rather than raise prices (since if they could’ve raised prices before they already would have). Based on this, you can also see why the economy would theoretically slow when this happens - businesses must deleverage when this happens, so money is flowing towards debt repayment rather than business reinvestment. Further, business expansion is now more expensive as interest rates are higher (if you finance with debt, you pay more interest - financing with equity always more expensive than debt). To boot - there’s also overindebted firms who will struggle / go bankrupt in the higher interest rate environment, presenting a further drag on the economy. *not saying basic in a condescending way - I don’t have an advanced degree in economics, just an undergrad one so I can only speak to the models I learned there. I think there are more elaborate/ realistic models that probably put a finer point on this.
But how is raising bond yields affecting supply chain. They are just trying to destroy demand and create a market crash at which point the cycle starts all over again. We need to focus not on paying off student loan debts and focus on creating better employment avenues.
As an investor in bonds, you're gambling that the bond interest rate will be a better investment should the bank paying the slightly higher interest rate, all of a sudden decrease their high yield savings account rate. Banks have every right to adjust the interest rate products to their liking since they have to make money. For government bonds, its locked in..
"Bond Yields are the barometer of the economy, they are extremely important to the US and Global Economy, Bond Yields affect everything from cost of a mortgage, to the cost of borrowing for a business, if your borrowing money it's going to be determined to a large extent by US Government bond yields." - Please read this over 1000000000 times until it actually sinks in, THEN REALIZE THAT THE FED HAS BEEN PRINTING MONEY OUT OF THIN AIR TO SUPPRESS THESE RATES IN AN ATTEMPT TO ENTICE PEOPLE TO TAKE ON MORE AND MORE AND MORE AND MORE DEBT... Just think about that for a second, "The displacement of risk, is the risk not being accounted for."
This also applies to stocks - higher risk free rate impacts Waco which is a key input to estimate a company’s value based on their future cash projection. This is why all high growth stocks are getting crushed yet core tech stocks with hefty cash balance and free cash flows are more stable than those with high growth expected companies
@@MrSupernova111 weighted average cost of capital, essentially the rate at which you discount a company while valuing them. A higher discount rate = lower valuations
The only criticism I have of this video is the image used says "Treasury Bill". Treasury Bill debt obligations have very short term maturities ranging from 4 to 52 weeks.
It's amazing to see AMC doing well after all the doomsday analyses from naysayers. The stock market is a device for transferring money from the impatient to the patient - warren buffet. It's good to remind people of this right now; you buy on fear and sell on greed or just hold through it all for the long term. It’s easy but lots of people forget.
A bond is a contract with a fixed payment. You don't extra yield when rates change. Your sunk cost is still $1,000. You're trying to roll multiple bond contracts into one. Not how it works.
if the bond yield is affected by the interest rate which is adjusted by the fed, would it be safe to say that we can just look at the interest rate and ignore the bond yield when predicting economy performance?
Would it really trouble you guys to do more than a simple five minute explanation? You can't possibly fit all the relevant data into a five minute video.
Correct me if I am wrong. higher bond yields means fed want from businesses not to spend on the economy during high inflation. They just want to absorb excessive liquidity from the market to tame inflation. so high yields attract businesses or investors during these harsh times when the market is down. Is it correct?
If the economy goes up, the rates go up… but this is not an automatic decision by the market… this is a professional decision by the federal reserve, as a reaction to inflation, which could be on time, or could be late… please anyone correct me if I am wrong.
I still don’t quite understand a fundamental concept here. If bond yields are rising, that means the price is going down (ie people are selling treasuries). If we think we’re headed to a recession, why would people be selling treasuries? Are they just fleeing to cash?
If Fed cuts the fed funds rate, bond yields should decrease. However, since the economy is so strong, no one wants to tie money up in bonds, so shouldnt bond yields increase instead? Confused.
The example says the stock market rises with a rise in yields and yields rise with a rise in interest rate. How do people keep on investing in stocks instead of the dollar in a risk off scenario ? Like isn't the stock index market a negative correlation to the dollar index ?
It is a government inspired crisis this time. The Treasury have to sell Bonds to cover the trade imbalance and the government spending imbalance. In order to sell them they have to raise interest rates and the old long-term, low risk, low interest, AAA investments (including Treasury Bonds), held by the banks (often due to government regulatory policy), become next to worthless. The next milestone is the 15th when the government issue a new batch of Bonds. I have approximately 350k stagnant in my portfolio that needs growth. What is the best way to take advantage of this downturn?
Every day we have a new problem. It's the new normal. At first we thought it was a crisis, now we know it's a new normal and we have to adapt. this year will be a year of severe economic pain all over the nation
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $$275k to $850K...
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? I'm in dire need of proper portfolio allocation.
Her name is Annette Christine Conte can't divulge much. Most likely, the internet should have her basic info, you can research if you like
Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.
Great video showcasing the relations between expansionary and contractionary monetary policy essentially.
Thanks for watching
Don't forget to hit The subscription button
WhatsaP±𝟺𝟺𝟽𝟺𝟶𝟺𝟾𝟷𝟸𝟿𝟸𝟿
Investments are the roots of financial security; the deeper they grow, the stronger your future will be."
The deeper your investment roots, the stronger your financial security will be in the future.
Exactly! With my adviser, I’ve cultivated deep investment roots, strengthening my financial security for the future.
I would love an introduction to an adviser who can help me strengthen my financial roots.
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further.
Thank you for this amazing tip. I just looked the name up and wrote her.
Investors should use their money continuously, in my opinion, especially In 2025, the market will start to diversify even further. Given recent stock success, it becomes sense to invest my $460k portfolio in conclusion that the stock market is the best intelligent investment accessible. Certainly, others agree.
I think the smartest way to go is to spread out your investments. By putting your money into different asset classes like bonds, real estate, and stocks, you can lower the risk if one part of the market goes bad.
I totally agree with you. I started out investing on my own too and lost quite a bit. After the 2020 crash, I managed to pull out about $160k. I then invested that money with an analyst, and in just seven months, I made almost $580,000. It's amazing how having the right guidance can turn things around!
I'm intrigued by this. I've searched for financial advisors online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
My CFA Laurelyn Gross Pohlmeier, a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market
I appreciate you sharing. Curiously, I looked up her complete name online, and after a little scrolling, her website appeared. Before approaching her, I conducted my research and reviewed her qualifications. Many thanks once again.
A weak dollar can signal an economic downturn, making me to ponder on what are the best possible ways to hedge against inflation, and I've overheard people say inflation is a money-eater thus worried about my savings around $200k
The stock market is a way to hedge against inflation. Most notably amidst recession, investors need to understand where and how to allocate funds to hedge against inflation and still make profits.
in my opinion, the impact of the rise or fall of the U.S. dollar on investments is multi-faceted but learning how to grow your money has never been easier than now that you can explore and experience a truly diverse marketplace passively by using a well-performing portfolio-advisor.
Exactly why i enjoy my day to day market decisions being guided by a portfolio-coach, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/ analvsis they have, it's near impossible to not outperform, been using a portfolio-coach for over 2years+ and I've netted over 400k.
How can I reach this adviser of yours? because I'm seeking for a more effective investment approach on my savings?
'Carol Vivian Constable, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
Being able to watch this video and know all of this is such a good feeling. Who knew college education is so beneficial.
bro i understand with no college i hope thats not ur maximum knowledge
Really happy to have understood everything, all the terms and technicalities, in the video. I thought doing a bachelor’s degree in economics was a wast of my time but in these cases…it shows me it was worth it!
Thanks for watching
Don't forget to Hit the subscription button
WhatsaP±𝟺𝟺𝟽𝟺𝟶𝟺𝟾𝟷𝟸𝟿𝟸𝟿
If it makes you feel any worse, I also understood everything in this video and do not have a 4 year degree at all.
@@3rkid 🤣
@@3rkid Yeah, his logic was really strange. A 4 year economic degree didn't make him understand these basics but he's proud that it helped him to understand this video today. What??
But it is a waste of time.
Love these short educational videos. Great stuff.
Despite rising bond yields and falling stock prices, the markets remain uncertain about whether the Federal Reserve will maintain its objective of raising interest rates until inflation is subdued. As I contemplate whether to sell my $401k in equities, what's the most effective strategy for capitalizing on the current downturn in the market?
I advise you to seek professional advice because building a strong financial portfolio is more challenging. Your long-term objectives and budgetary preferences can be catered to in the ideas you get after that.
Accurate asset allocation is crucial. Some use hedging or defensive assets in their portfolio for market downturns. Seeking financial advice is vital. This approach has kept me financially secure for over five years, with a return on investment of nearly $1 million.
Mind if I ask you to recommend this particular coach you using their service?
Her name is Rebecca Nassar Dunne can't divulge much. Most likely, the internet should have her basic info, you can research if you like.
I searched her up, and I have sent her an email. I hope she gets back to me soon. Thank you
When you derive every possible capital investment you could possibly make, the one which is the ‘safest’, is the bond from the country with the strongest government (US). All investments are then analysed to that yard stick. That’s why it’s vital.
Excellet video, I've already undestood the importance of bond yields.
I'd watched so many bond-yield-price videos and thought I'd understood it. Till today I know I missed the info at 2:24. I did not know that the "yield goes up" also applied for the existing bonds, as their yield is calculated on the current price (lower) instead of the face value.
So the yield stays the same but goes up relatively to the now lower price price ?
@@joe55514 Yes
Or to be more specific, the coupon stays the same.
If the bond was already issued the yields stay the same but the bond will decrease in price if the yield goes higher and increase in price if the yield goes lower. Which makes since, I would pay a higher price for a better yield. Like buying a bond from 1995 in 2010. You would want that 5 percent apy over 0.1 percent.
Yes. This is never explained in videos about bond pricing.
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for....
The majority of my holdings ($650K) are Nasdaq, Apple, and Tesla stocks, respectively. I got in early but am undecided whether to sell or purchase back at reduced prices owing to the present market condition.
Focus on two key objectives. First, stay protected by learning when to sell stocks to cut losses and capture profits. Second, prepare to profit when the market turns around.I recommend you seek the guidance a broker or financial advisor.
@@Robertgriffinne Whichever option you choose, be careful to seek advice from a trustworthy investment advisor. I do business with one, and she has helped me get a better handle on the stock/ETF market throughout this upheaval.
@@Natalieneptune469 Hello, how did you handle it? I believe I require an advisor after reading these comments about hiring them. Simply said, I don't want to commit errors that will significantly harm me.
@@Robertgriffinne Susan Agnes Hancock is the analyst/investment-adviser. She has been of great help and her tutelage has brought me to a higher understanding of profit generation. You can look up her name on the net for her page and reach out. Understands the job perfectly
@@Natalieneptune469 This recommendation literally came at the right time, I dipped by $11k in stocks last week alone. Its crazy! I just looked up Susan Agnes Hancock online and researched her accreditation. She seem very proficient & I wrote her detailing my Fin-market goals . Information they say, is power. Thanks for this.
Good explanation. Thank you.
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WSJ (5 million subscribers) in 2022 posts a video in 720p
No folks, this is not a joke
Even if bond yields are rising while stock prices are decreasing, the markets are still skeptical whether the Federal Reserve will stick to its goal to raise interest rates until inflation is under control. As I'm still debating whether to sell my $401k worth of equities, what is the best way to profit from the current down market?
The best market strategy at the moment is working with a respected investing coach. I've been in touch with a coach for a time now, mostly because I lack the depth of understanding and mental toughness to deal with these ongoing market conditions. During this recession, I made about $700k, proving that the market is more complicated than most people think.
@@emiliabucks33 Due to the significant falls, I need advice on how to rebuild my portfolio and develop more successful tactics. Where can I find this coach?
I have stayed away from all of the issues that the erratic market presents. Today, reading, research, patience, and seeking guidance when necessary are the greatest ways to break into the market. I merely copy Dawn Maureen Humphrey, a CFA, whose actions I witnessed on Bloomberg Business News because I am unable to handle my portfolio owing to the nature of my profession. Ever since, everything has been easy.
@@emiliabucks33 Wow! I looked up Dawn Maureen Humphrey complete name online just out of curiosity and was pleasantly surprised by her credentials. Thank you for sharing.
@@emiliabucks33has anyone told you that you look like Scott Morrison. The resemblance is uncanny.
Great explanation
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Make more videos about investments please. It's really interesting theme
Thanks for the economic education.
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Fed reserve and the treasury is not bothered about stock capital market. They are more concerned about the treasury bond market. They fear the bond market may become dysfunctional and illiquid. Bond yields are one of the important parameter that influences stock market. All stock pundits fail to mention how the bond yields influence stock market. My main concern now is how we are going to achieve all of that given that the market has been a mess for most of the year. I already lost $23,000
@Blayson Quinn I agree. Based on firsthand encounter with a fiduciary counselor KATHERINE DUFFY BURKE, i have $385k in a well diversified portfolio which has grown by 3x with compounding, venturing doesn’t necessarily boil down to money but you also have to be informed, be patient and back it up with good hands
@@RachelBrinkmeier wow thats a huge milestone. Please how can i reckon with such skillset? i want to grow my emergency funds of approximately $57,000 advantageously
@@RachelBrinkmeier I searched for Katherine using her full name and found her webpage, read her resume, education, qualifications and it was really impressive. She is a fiduciary who will act in my best interest. So, I sent a message and I hope she replies soon
Tom Grillo well done for the excellent animations!
Today this makes more sense than ever
“Sam Goldfart” 2:51 🤩🤣 Is that really his name?!?!?
@1:57 did you forgot to mention "before the bond matures" ?
Came here to see this. Definitely before it’s maturity date lol
This is better than most content. But on a deeper level this still doesn’t explain anything. A word on the logic of risk might help.
Many people are experiencing crash market fatigue and are tired of hearing about the worst, even though it's true. We're slowly being boiled in the pot! I want to diversify my $250K portfolio.
I completely agree. It's not just about the dividends, Diversifying a portfolio can be a smart move, i always advise one gets a professional to help you out.
The issue is most people have the "I want to do it myself mentality" but not equipped enough for a crash, hence get burnt, no offense. In general, Financial Consultants are ideal reps for investing jobs, and at firsthand encounter, since Jan.2020, amidst covid outbreak, my portfolio has yielded massively in ROI, summing up to 7-figures as of today.
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
Carol Vivian Constable is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
Great Stuff!
A huge percentage of North American energy companies are losing money. Probably the worst investment is a junk-bond index fund .
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Thank you
Nice content. Thanks
Nice video.
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2:04 "If the economy is doing well, interest rates may go up."
So why are stocks going down and why is the news saying future profits are going to go down, as interest rates continue to rise in 2022,
if higher rates are supposed to be indicative of a good economy?
Because they are clueless
Higher rates aren't indicative of a good economy. Productivity, low inflation, and low unemployment are indicators of a good economy. Unfortunately, all those things are tied together so when one goes out of whack it affects the others. Its a balancing act.
More videos like these
Four Economic sectors. Primary, Secondary, Tertiary, Quaternary.
Is there a chart or website or channel, that breaks down WHAT time of year each sector is at its strongest?
As well as a chart that shows historical data Year by year for each sector performance?
@1:44 coupon is NOT the same as yield. The coupon rate doesn't change for a bond during its lifetime but its yield can and will. That is so Integral to understanding the economics of bonds!
The vid shows a new bond issued at 5% coupon. the old one stays at 4%
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Economy Does Well --> Interest Rate Increase to cool inflation --> New Bond Interest Rate Increase to compensate for the predicted Inflation --> Current Bonds (Bonds) decrease in price --> Current Bonds (Bonds) Yield increase
OK...They do not explain why bond yields mimic interest rates. Does this mean that the Fed basically controls bond yields by setting the interest rates? Is it possible that bond yields and interest rates move in opposite directions too?
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Bond yields are the minimum yield you can get with theorically "zero risk". So if a company wants to offer a bond, it needs to offer higher yields than the government offers, as there is a higher risk involved.
This basic interest rate also has impacts on the costs of borrowing for banks. And if they have to pay more on one side, they will also ask for more in order to offer loans to consumers and corporations. So it is all connected.
Private corporations have to offer higher yields than government bonds in order to attract investors. The difference between a higher yielding, private bond when compared to a government bonds is that the private bond holder can "call back" those bonds at an earlier date so they can save money by issuing a bond at a lower rate. With government bonds, the government can't do that..
The Market have been suffering over the past month, with all the three indexes recording losses in recent weeks. My $400,000 portfolio is down by approximately 20%, any recommendations to scale up my returns before retirement will be highly appreciated.
Find stocks with market-beating yields and shares that at least keep pace with the market for a long term.For a successful long-term strategy | recommend you seek the guidance a broker or financial advisor.
I agree. Based on personal experience working with an investment advisor, I currently have $385k in a well-diversified portfolio that has experienced exponential growth. It's not only about having money to invest in stocks, but you also need to be knowledgeable, persistent, and have strong hands to back it up.
My advisors is Valerie Jean Zwosta. Thank me later.
Coming to say HI during the longest yield inversion in history!
Sam Goldfarb is a genius
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Well this is a great educational video ! Hats off to wsj. But I still don't get how higher bond yields can rise stock prices simultaneously because if cash flows have to be discounted at higher rate it will reduce the value of stocks theoretically right ?
Two factors impact stock prices: 1. discount rate, as you mentioned. 2. changes in cash flow (INCREASE, in this scenario). If the cash flow outweighs the discount rate impact, then stock prices will increase. If the cash flow does not outweigh the discount rate, then stock prices will decrease.
Bottom line: stock prices can move either direction, when bond yields rise.
p.s. It took me an hour to figure this out, as I had the same question.
@@larryjones9773 Great 👍 Thanks.
What time is it? 😴🤔😊
Stocks are falling and bond yields are rising, but markets still don’t seem convinced the Federal Reserve will pursue plans to keep increasing interest rates until inflation is under control. I'm still at a crossroads deciding if to liquidate my $117k stocck portfolio, what’s the best way to take advantage of this bear market?
Remember that investing in the stock market carries risks, and it’s important to do your own research and consult with a financial advisor before making any investment decisions.
What do you mean at 01:36 “the fixed amount a bond pays each year AFTER its maturity date” you mean, BEFORE?
She says "up to" and not "after." It just sounds like "after."
in the context of 2:04, what does intrest rate mean?
2:22 “when the price goes down the yield goes up” is she referring to yield based on paying the new price of $922? Eg the coupon is still actually 4% but because the bond only costs $922 now that actually works out at 5%?
That illustration confused me too, I assume it’s wrong and infact what really happens is what you mentioned
I have couple bonds how can I cash it out they are from 1922
Nice to know and learn. Thanks so much for explaining this. It rises the cost of borrowing money, paying a mortgage for a house will be more expensive this year. So basically, for the sake of cooling down inflation the people who are paying for their houses will pay the price? Cheers.
Thanks for the exceptionally interesting video
There is one aspect that I don't understand very well though
Why the interest paid on short-term bonds is usually higher than that paid on bonds with a ten-year maturity
Shouldn't it be the other way around?
Munger and Buffett have both achieved an incredible feat with Berkshire. They've turned thousands to billions, and have made a lot of people wealthy in the process. I really saw the potential of the stock market by reading Berkshire's annual letters. I recently sold my $674k apartment in the Bel Air area and I'm hoping to throw it into the stock market. I just don't want to lose everything.
Most newbies either do not understand the power of compound interest, or are just impatient. For the average Joe, however, I think it is just best to invest in the S&P 500, and just wait, which is reliable, albeit extremely long-- lots of years. Or just use a professional analyst and speed up wealth creation. Most people underestimate the power of the latter.
@@devereauxjnr It's a delicate season now, so you can do little or nothing on your own. Hence I’ll suggest you get yourself a financial expert that can provide you with valuable financial information and assistance
@@AlbertGReene-p8w I actually subscribed for a few trading courses but it didn't help much, been getting suggestions to use a proper financial advisor, how did you go about touching base with your coach?
@@viewfromthehighchairr I absolutely dislike giving such advice because every person's situation is different. However, there are a lot of independent advisors you might look into. "NICOLE DESIREE SIMON" and I have been working together for nearly four years, and she is excellent. You could proceed with her if she satisfies your discretion. I support her.
@@AlbertGReene-p8w I just checked her out and I have sent her an email. I hope she gets back to me soon.
Except the fact that the FED shouldn't have stopped its interest rate hikes of 2018. They were already late with hiking up the interest rates (but who can blame them, if their pockets are getting sweetened by corps) and now the bubble is so big, that WHEN it bursts, the 2008 recession will look like a walk in the park compared to what's coming.
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Dude come on, this is conjecture. You don’t understand what happened in 2007 if you genuinely think that.
@@SuperParkerBrothers the housing bubble of 2008 has been part of my MBA thesis. We have also dissected the scale & financial aftermath of the last recession during the MFIN. Trust me, I perfectly understand what happened and have a very good understanding of what is going on now.
My comparison to the 2007 was not in the underlying cause but to the scale and damage that the coming recession will have.
What if I told you…It never pops.
@@user-dw1zb3fh5n One could argue that, but what is meant by the bubble bursting is when the overinflated market value (in comparison to the cumulative book value of all the companies) drops extremely quick, over a short period of time, causing a mass sell-off and inevitably dropping far below the book value.
I do not borrow money,I am a Money maker as I am extremely wealthy.Thanks !
This is a TV documentary type of thing.
Thanks for the breakdown! A bit off-topic, but I wanted to ask: I have a SafePal wallet with USDT, and I have the seed phrase. (air carpet target dish off jeans toilet sweet piano spoil fruit essay). How should I go about transferring them to Binance?
A 5 min video is not enough to explain this topic.. not to mention when those 5 mins are used poorly.
Go watch Ray Dalio "how the economic machine works" thank me later
true
thanks, was looking for the same in the comments.
Stupid comment. This video is specifically discussing bonds. Dalios video is about how the broader economy works. Thus this video is only 5 mins on one subject, Dalios is 30 mins on several subjects.
Thanks for the forecast! A bit off-topic, but I wanted to ask: I have a SafePal wallet with USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). What's the best way to send them to Binance?
We are having a yield here and there is a safe investment and very confident with my accessory yield.There is a fed that will raising it to0.
The economy has grow older and it raises well.
can I risk subscribing to this channel?
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Most of that "Inflation" was a) price increase in commodity markets and b) price gouging by the industry.
It's not that consumers during COVID lockdowns had consumed more. The working class struggles to survive. How can they create demand? People should watch Chris Martensen's lectures about the bond price death spiral.
So finally we can get the risky and flimsy buyers out of the market. I'm trying to have an affordable life bit dont like to borrow what I cant afford. I need affordability
it would be nice to know the % of people holding bonds to maturity. Or do most speculate over the bond price by anticipating interest rate direction?
Yes.
Yes to both
Never speculate on where and when bonds will make a move. Buy the market in live time. Keep buying the market in live time and it'll all work out. I have a large individual issue muni bond position and I always hold to maturity.
Arent coupons rate also Discounted with ytm?
ok but bond yield is being distorted
But when the cost of borrowing increases, wouldn't the companies need to increase the price of products to maintain their profit margin, thus more inflation. Honestly confused
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Price elasticity is what you’re talking about= How much can a corporation increase the price of a good before people stop buying it. But what we’re seeing so far is that companies have increased the price of goods but people keep buying them, therefore making inflation worse. However, there will be a point where prices increase to such a point that consumers stop buying as much of the product, therefore decreasing demand, therefore helping the supply/demand problem. This would technically help reduce inflation.
Per basic economic theory*, the technical answer is that prices and profit margins (before accounting for interest / taxes) are a function of industry structure/competition, business model / unit economics, and customer value propositions (basically firms will charge as high a price as they can get away with that won’t reduce their overall profits).
Capital structure (whether a firm uses debt or equity to finance the firm) will ultimately affect the (after-tax) bottom line but is an independent decision. It is always favorable to use as much debt as the business can support because it boosts equity returns in a tax-advantaged way. If interest rates rise, the amount of debt a business can theoretically support is lower and they will work to reduce their debt rather than raise prices (since if they could’ve raised prices before they already would have).
Based on this, you can also see why the economy would theoretically slow when this happens - businesses must deleverage when this happens, so money is flowing towards debt repayment rather than business reinvestment. Further, business expansion is now more expensive as interest rates are higher (if you finance with debt, you pay more interest - financing with equity always more expensive than debt).
To boot - there’s also overindebted firms who will struggle / go bankrupt in the higher interest rate environment, presenting a further drag on the economy.
*not saying basic in a condescending way - I don’t have an advanced degree in economics, just an undergrad one so I can only speak to the models I learned there. I think there are more elaborate/ realistic models that probably put a finer point on this.
But how is raising bond yields affecting supply chain. They are just trying to destroy demand and create a market crash at which point the cycle starts all over again. We need to focus not on paying off student loan debts and focus on creating better employment avenues.
Why buy bonds over a high yield savings account?
As an investor in bonds, you're gambling that the bond interest rate will be a better investment should the bank paying the slightly higher interest rate, all of a sudden decrease their high yield savings account rate. Banks have every right to adjust the interest rate products to their liking since they have to make money. For government bonds, its locked in..
Interesting
"Bond Yields are the barometer of the economy, they are extremely important to the US and Global Economy, Bond Yields affect everything from cost of a mortgage, to the cost of borrowing for a business, if your borrowing money it's going to be determined to a large extent by US Government bond yields."
- Please read this over 1000000000 times until it actually sinks in, THEN REALIZE THAT THE FED HAS BEEN PRINTING MONEY OUT OF THIN AIR TO SUPPRESS THESE RATES IN AN ATTEMPT TO ENTICE PEOPLE TO TAKE ON MORE AND MORE AND MORE AND MORE DEBT... Just think about that for a second, "The displacement of risk, is the risk not being accounted for."
Skyrocketing inflation ...... Why not blaming money printing instead ??
This also applies to stocks - higher risk free rate impacts Waco which is a key input to estimate a company’s value based on their future cash projection. This is why all high growth stocks are getting crushed yet core tech stocks with hefty cash balance and free cash flows are more stable than those with high growth expected companies
What's a Waco?
@@MrSupernova111 weighted average cost of capital, essentially the rate at which you discount a company while valuing them. A higher discount rate = lower valuations
@@de3thre3 . Oh. Thanks!
The only criticism I have of this video is the image used says "Treasury Bill". Treasury Bill debt obligations have very short term maturities ranging from 4 to 52 weeks.
It's amazing to see AMC doing well after all the doomsday analyses from naysayers. The stock market is a device for transferring money from the impatient to the patient - warren buffet. It's good to remind people of this right now; you buy on fear and sell on greed or just hold through it all for the long term. It’s easy but lots of people forget.
are they referring to the federal fund rate when they are discussing "short-term interest rates"?
I think so. The overnight rate.
I watched this twice and I still don't get it
what don't you get?
Key takeaway: If bond yields rise, so do interest rates.
If interest rates rise, stock prices, especially tech stocks, go down.
me either.
@@DKTrue you missed the part where she said sometimes you see bond yields and stocks both going up at the same time 2:38
She didn't explain the inverse relationship between price of a bond and yield very well either
They kind of glossed over the part about when interest rates rise the value of your bond goes down, but then the yield goes up. Why is that?
How does a strong economy create price inflation? I thought it was expanding the money supply that does that.
how to buy it for foreign/non resident，i dont have tax number
Are bonds owners usually making more money from yield or rates
$40 annual coupon payment on a $1,000 bond would drop to $800 if interest rates rise to 5%. $40/.05= $800
I don't think so. U still get the yield of the original coupon if u hold to maturity.
A bond is a contract with a fixed payment. You don't extra yield when rates change. Your sunk cost is still $1,000. You're trying to roll multiple bond contracts into one. Not how it works.
Wonder how the economy got “overheated” in the first place 😂 money printer go brrrr!
if the bond yield is affected by the interest rate which is adjusted by the fed, would it be safe to say that we can just look at the interest rate and ignore the bond yield when predicting economy performance?
The short answer to your question is yes.
@@GoldenAura32 alright. thanks man.
No one can predict economic performance. You'd need a crystal ball for that.
@@MrSupernova111 do you have one
Hahn Centers
the reporter mentions when an economy is doing well Interest Rates go up. In recent years only been going down.
interesting
This should be a ad why we don’t need central banks intervention in the economy
Herminio Trace
It's incorrect to conflate a bond's coupon rate with its yield. These are two different metrics, and using these interchangeably is what's confusing.
Aren't they essentially the same thing?
Guys why do you make small videos.
Would it really trouble you guys to do more than a simple five minute explanation? You can't possibly fit all the relevant data into a five minute video.
Correct me if I am wrong. higher bond yields means fed want from businesses not to spend on the economy during high inflation. They just want to absorb excessive liquidity from the market to tame inflation. so high yields attract businesses or investors during these harsh times when the market is down. Is it correct?
No, that's wrong.
@@ooluta7578 whats correct then
If the economy goes up, the rates go up… but this is not an automatic decision by the market… this is a professional decision by the federal reserve, as a reaction to inflation, which could be on time, or could be late… please anyone correct me if I am wrong.
QUELLES RELATIONS DATAS ET REALITES SUR LE TERRAIN
The monetary system is anthropocentric and unnecessary. Post scarcity is the solution.
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I still don’t quite understand a fundamental concept here. If bond yields are rising, that means the price is going down (ie people are selling treasuries). If we think we’re headed to a recession, why would people be selling treasuries? Are they just fleeing to cash?
If Fed cuts the fed funds rate, bond yields should decrease. However, since the economy is so strong, no one wants to tie money up in bonds, so shouldnt bond yields increase instead? Confused.
The example says the stock market rises with a rise in yields and yields rise with a rise in interest rate. How do people keep on investing in stocks instead of the dollar in a risk off scenario ? Like isn't the stock index market a negative correlation to the dollar index ?
I wish yields were 15%. Speculation is running rampant.
If the Fed really wanted to do something positive, it would require all banks to maintain adequate reserves!