The Asset Crash and Recession will force the Fed to Pivot and Cut Interest Rates. Unfortunately, history says the Economy and Stock Market will only get worse after they do that.
Jerome Powell & the Fed are increasing Interest Rates at the fastest rate in decades to combat Inflation. But they will eventually be forced to Pivot - and when they do - that is a historical sign that Stock & Housing Prices will go down by more.
For instance - over the last 8 Major Recessions, the Fed pivoted about 14 Months before the S&P 500 bottomed out. On average, the S&P 500 crashed by another 22% AFTER the Fed Pivot.
A similar situation occurred with the Housing Market in the 2008 Financial Crisis. The Fed Pivoted back in August 2007 and started cutting rates. Yet Home Prices in America continued declining for the next 5 Years - going down by 25% in total across the US and by 50% in markets like Miami and Phoenix.
The lesson to learn here is that when Jerome Powell inevitably pivots to cut rates - my projection is in early 2023 - that will be a sign that the Recession has gotten a lot worse. Job Losses, Layoffs, and Bankruptcies will increase. Which in turn will likely push Asset Prices down further.
A big question regarding the Fed Pivot is if Inflation continues raging across America. If Inflation continues to stay elevated, the Fed will be forced to continue hiking rates. But if Deflation occurs, then the Fed will likely cut rates.
There are several big deflationary forces in the Economy right now. The Housing Market is one of them. Both Home Prices and Rents are starting to decline across America right now, suggesting that Deflation could be coming in the future.
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DISCLAIMER: This video content is intended only for informational, educational, and entertainment purposes. Neither Reventure Consulting or Nicholas Gerli are registered financial advisors. Your use of Reventure Consulting's YouTube channel and your reliance on any information on the channel is solely at your own risk. Moreover, the use of the Internet (including, but not limited to, YouTube, E-Mail, and Instagram) for communications with Reventure Consulting does not establish a formal business relationship.
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Additional stock footage provided by Videvo. http://www.videvo.net/
#thefed #interestrates
Jerome Powell & the Fed are increasing Interest Rates at the fastest rate in decades to combat Inflation. But they will eventually be forced to Pivot - and when they do - that is a historical sign that Stock & Housing Prices will go down by more.
For instance - over the last 8 Major Recessions, the Fed pivoted about 14 Months before the S&P 500 bottomed out. On average, the S&P 500 crashed by another 22% AFTER the Fed Pivot.
A similar situation occurred with the Housing Market in the 2008 Financial Crisis. The Fed Pivoted back in August 2007 and started cutting rates. Yet Home Prices in America continued declining for the next 5 Years - going down by 25% in total across the US and by 50% in markets like Miami and Phoenix.
The lesson to learn here is that when Jerome Powell inevitably pivots to cut rates - my projection is in early 2023 - that will be a sign that the Recession has gotten a lot worse. Job Losses, Layoffs, and Bankruptcies will increase. Which in turn will likely push Asset Prices down further.
A big question regarding the Fed Pivot is if Inflation continues raging across America. If Inflation continues to stay elevated, the Fed will be forced to continue hiking rates. But if Deflation occurs, then the Fed will likely cut rates.
There are several big deflationary forces in the Economy right now. The Housing Market is one of them. Both Home Prices and Rents are starting to decline across America right now, suggesting that Deflation could be coming in the future.
---
JOIN as a Reventure CHANNEL MEMBER:
https://www.youtube.com/channel/UCVTQunGrE3p7Oq8Owao5y_Q/join
INSTAGRAM: https://www.instagram.com/reventure_consulting/
TWITTER: https://twitter.com/nickgerli1
CONACT US: https://reventureconsulting.com/contacts/
DISCLAIMER: This video content is intended only for informational, educational, and entertainment purposes. Neither Reventure Consulting or Nicholas Gerli are registered financial advisors. Your use of Reventure Consulting's YouTube channel and your reliance on any information on the channel is solely at your own risk. Moreover, the use of the Internet (including, but not limited to, YouTube, E-Mail, and Instagram) for communications with Reventure Consulting does not establish a formal business relationship.
Image(s) and/or Footage used under license from Shutterstock.com. https://www.shutterstock.com/
Additional stock footage provided by Videvo. http://www.videvo.net/
#thefed #interestrates
