ilmscore | The Market Is About To Go INSANE

The Market Is About To Go INSANE

Published: 2021-12-02
Status: Available | Analyzed

Predictions from this Video

Total: 6
Correct: 0
Incorrect: 0
Pending: 6
Unrated: 0
Prediction
Topic
Status
As of September 2022, some contracts were pricing in negative federal funds rates, indicating a bet on scenarios where investors would accept a loss to secure their cash.
"beginning in september of 2022 some contracts have begun to price in negative federal funds rates meaning they're betting on a scenario where contracts would eventually be priced in above 100 at which point you're basically just saying i'm willing to lose money just to have a guaranteed safe spot to put my cash"
Interest Rates
Pending
An asset manager predicts that low or negative interest rates could persist indefinitely due to a 700-year downward trend in rates, a phenomenon known as secular stagnation.
"one asset manager believes that we could potentially see low or negative interest rates forever based on history his research dives into what's known as secular stagnation which has identified a downward trend in interest rates dating back over 700 years predicting that real rates could soon enter permanently negative territory"
Interest Rates
Pending
The current high inflation, driven by supply chain issues and stimulus packages, is eroding wage increases and may lead to negative real interest rates.
"so that of course leads to the question why is it happening now and is there actually a chance of this coming soon to a bank near you well until recently the plan was almost the exact opposite since the beginning of the year the federal reserve has been facing an uphill battle of inflation while supply chain issues low interest rates and stimulus packages have caused prices to rise at their fastest level in well 30 years as we can already see food prices are up 8.6 gasoline rose 64 to its highest level in seven years rents are up 16.4 this year alone home prices are up 19 and the fact is the situation is so bad that rising inflation is taken away from the average worker's wage increases and then some meaning you're effectively now making less money today than you did before"
Interest Rates
Pending
Due to rising inflation, it's predicted the Federal Reserve will raise interest rates six times before 2024.
"the federal reserve is going to have no other choice but to raise rates six times before 2024"
Interest Rates
Pending
Real interest rates are already negative at -5.3% in the US due to inflation, and are projected to remain negative around -3.3% in the coming years, even with potential interest rate hikes.
"we already have negative rates and it's happening right before our eyes that's because if you have a two and a half percent fixed rate mortgage with 7.8 inflation you're effectively gaining 5.3 percent by borrowing money bringing negative interest rates here today even throughout the next few years even if interest rates increase real rates are expected to remain negative and stand at around negative 3.3 percent in the us"
Real Interest Rates
Pending
Certain investors anticipate negative interest rates in 2022 if economic conditions worsen, and are thus buying negative fund futures.
"some investors believe that negative rates are possible in 2022 if the economy gets worse so by buying negative fund futures they're basically betting on the fact that rates will be even lower"
Interest Rates
Pending