THE FED JUST FLIPPED THE MARKET | Major Changes Explained
Published: 2022-07-27
Status:
Available
|
Analyzed
Published: 2022-07-27
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
The housing market is predicted to enter a 'deep freeze' due to high prices and rising interest rates, which will prevent first-time buyers from entering the market.
"the housing market is about to enter a deep freeze as first-time buyers are locked out of the market from higher prices and Rising rates"
Pending
There is a 50% chance of a recession being confirmed within the next 12 months.
"some estimates say that we have a 50 chance of confirming a recession in the next 12 months"
Pending
The stock market is pricing in an 85% chance of a recession.
"well the stock market implies an 85 chance of this happening"
Pending
Interest rate increases may slow down if inflation subsides, and the current rate might be neutral, suggesting this could be the last major hike unless inflation worsens.
"it was even mentioned that they would begin slowing the rate increases if inflation begins to subside and as of today we could already be at a neutral rate of interest which means that this could be the last of any major rate hikes unless of course we see signs of worsening inflation"
Pending
High inflation and rising costs are not indicative of a healthy economy, and higher interest rates are expected to eventually lead to normalization.
"even though it's going to take time high inflation and Rising costs are not a sign of a healthy balanced economy and if higher interest rates are able to reduce that growing cost then eventually things should begin to normalize"
Pending
A market reset is needed for excessively valued assets, and higher interest rates could be a mechanism to achieve this, leading to a more sustainable path.
"we really need a complete Market reset in terms of excessively valued well everything and maybe this could be a way to get things back on track in a way that's a lot more sustainable"
Pending
Job losses are expected as companies anticipate lower earnings and seek to cut costs, leading to higher unemployment.
"number one job losses as companies anticipate lower earnings they'll seek to cut costs and if extra staff isn't needed that leads to higher unemployment"
Pending
Workers can expect a 6-7% income loss for every 1% increase in unemployment, with a lingering 2.5% loss even after 15 years.
"a study in 2009 found that the average worker saw a six to seven percent income loss for each one percentage Point increase in unemployment rate and even after 15 years the loss is still two and a half percent"
Pending
Reduced private investment will occur as businesses scale back, leading to safer, smaller investments and consequently less economic growth and output.
"less private investment just like businesses scale back investors also tend to make safer smaller Investments and that in turn leads to less economic growth and less economic output"
Pending
Interest rates on savings accounts are expected to increase further.
"most likely these amounts are going even higher"
Pending
Locking in a fixed-rate loan is recommended as a strategy to be insulated from future financial changes.
"it might be a great time right now to lock in a fixed rate loan and then you're insulated on whatever happens in the future"
Pending
Jerome Powell indicated that softened spending and production indicators suggest a potential reversal of high consumer prices.
"Jerome Powell had a lot to say about this and in terms of their future outlook here's what they mentioned with this rate hike it was noted that recent indicators of spending and production have softened indicating that potentially we could start to see the reversal of Sky High consumer prices"
Pending
Jerome Powell stated that the US is not currently in a recession due to a strong labor market, and even declining GDP is viewed positively for demand management.
"Trump Powell also went on record to say that he doesn't believe we're currently in a recession because we have a very strong labor market and even if we do see declining GDP it's a good thing to help soften demand"
Pending
Increased market volatility is expected due to the highly anticipated nature of recent events, with the hope of transitioning to a new market environment afterward.
"since this has been such a highly anticipated event it's expected that we're going to see more volatility than usual and then hopefully from there the market could begin to look forward to a brand new environment"
Pending
Stocks and real estate are expected to continue their upward trend over the long term.
"stocks and real estate continue to move even higher over the long term"
Pending