Ep. 17 - What Moves the Market? w/ Alex Stewart
Ever wonder what people, events, or policies move the market? Today, we're talking about market movement and what factors determine whether or not the market is going up or down. For example, what happened when the Fed decided to raise interest rates, and why? We discuss inflation, interest rates, and the current state of the stock market. If you’re uncertain and looking for advice on preparing for future trends or are generally curious about the inner workings of the current market, this one is for you!
Jump in, and let’s explore what moves the market.
[00:01 - 05:50] What moves the market—let’s set the scene with inflation, Fed activity, and interest rate overview
[05:51 - 12:42] The market reacts to “better-than-expected” CPI (Consumer Price Index), leading to the biggest move in over a decade within just one day
[12:43 - 21:40] The Fed's attempt to maintain inflation may end in a “hard crash” rather than a “soft landing—” this is how it affects trends and opportunities
[21:41 - 28:35] How to prepare for a low savings rate and high credit card debt
[28:36 - 33:25] Inflation may be here to stay for a while; as the Fed gets backed into a corner, they’re going to react as they have historically
[33:26 - 38:24] Let’s look at the gas pump, what’s going on behind the scenes to ensure security and a quick forecast of gas prices
Quotes:
“What are some of the factors that actually move the market… When the market’s good, we don’t see these factors get enough attention. When the markets are in turmoil, we see every investor clinging onto the index looking for a reason why.” - Quinton Harris
“As inflation moves up or down, so do long-term interest rates.” - Quinton Harris
“The CPI came out better than expected. We’ve seen the biggest move since the last decade… That’s important because… now, all of a sudden, houses that weren’t affordable suddenly become more affordable.” - Alex Stewart
Resources Mentioned:
Bank of England is a nationwide lender that takes the time to understand your needs and structure the right mortgage for you and your family. Find your local branch at https://www.boemortgage.com/.
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