How rising interest rates can impact the stock market

[Mcau]

I want hyper inflation, want to pay off my house ASAP

[KoolDawg]

Elon Musk is the next Elizabeth Holmes...........

[kyle_crafty]

They're talking about run-of-the-mill inflation driven by wage-price spirals, and saying that's how you get an inflationary spiral. In my mind, that's not the only way. We have a fiat currency and it's value is really derived from people's faith in it's value. You can print money and encourage borrowing etc, but much like stock market bubbles, there is a tipping point in there when all the feedbacks turn from negative to positive.  Normally, you hold money, it holds it's value, there's no real push to gain or spend it. If you think inflation is going to increase, it now becomes a hot potato that you want to spend as soon as you get it. You do this by buying useful assets like houses, land, food, things you need. When everyone does this it drives up the price, which would normally dampen demand, but if the expectation that money will continue losing value and the price will only increase, then the price doesn't matter anymore. Sellers can ask arbitrarily high prices. But who's going to sell into this and accept that money? Thus supply goes down at the same time demand goes up, further exacerbating the situation.  The government has been pumping new money into the economy to try and stimulate it, yet velocity stays low. Who needs to spend all that money under normal circumstances? But what happens when it all starts losing value? All that "cold" money suddenly turns hot, and the *effective* money supply suddenly increases. Meanwhile, everyone is also incentivized to borrow as much as possible to "short" the currency, further increasing the supply. But who wants to lend into this? The credit market slows, and the government steps in as "lender of last resort" again....using printed money.  Meanwhile, the massive amounts of money tied up in the stock market suddenly need a new home. I mean, who wants to hold a stock when all you can get out of it is increasingly worthless money. You paper gains are impressive, but it's only a reflection of the fact your asset is losing value, because the only value it has is denominated in dollars (rather than any kind of tangible use).  I mean it goes on and on. Wage-price spirals may be a part of 'normal' inflation but they don't really play into hyperinflation.

[rockstar760fox]

Inflation is part of the plan. Just like the vaccine mandates. You will own nothing and be happy.  Rich get richer, Poor get poorer.

[Tribe_Of_Reuben]

Inflation is the keystone of your system. If you promise not to invade our country, we'll switch to gold

[tristan]

Very bullish on crypto after watching this

[NerdyEmy11]

Amazing how it becomes increasingly more difficult to effectively steer the ship as you intentionally manipulate the instruments you use to sense the environment around you.  Who would have thought?

[Irretarzan]

1:48 except those things are not included in inflation calculations, lol.

[SoccerBoss321]

If you want maximum safety, regular dividends, and regular price gains, then buy the five largest Canadian banks. They are Royal Bank of Canada (RY), Toronto Dominion Bank (TD), Bank of Montreal (BMO), Bank of Nova Scotia (BNS), and CIBC Bank (CM). But don't take my word for it. Research the history of these bank stocks. Maybe in three or four years from now, you will be thanking me after your stock portfolio keeps going up. People will always require banking services.

[iluvblunts]

Excellent forum, crypto is moving in the right direction.  Buying the dip again today.

[mistercheese43]

lmao... yeah... everybody sitting around the office with graduate degrees with no1 to do their work for them

[pikafan8]

Short it then, if you believe it will pop

[SUNBURD]

This  is an advertisement for value investing and not a  about bubbles. Misleading information. Let's take gamestop,  says that the bubble popped and that it lost 50% of its value from its all time high, which is true, but very misleading. Gamestop might be down 50% from its top, but is still up around 3000% from the beginning of 2020. How can you say that the bubble has popped?? If you are going to compare everything from its all time high, it looks like almost everything is a bubble.   Even simple facts in this  don't make sense. For example: 2:56 they say that dogecoin is 'down over 90%' . If the high is 0,74$ and its down 90%, the price would be 0,07$, but its around the 0,20$. That's a 73% drop, not a 'over 90%' drop. Or if you want to show tesla's all time high, just google all time high and you'll see that it's not 1209,75$. It is 1243.49$ on 4 november. Come on ...

[KeyLock]

Tax corporations if you want to put an end to inflation

[Asipdkroks]

Better educate yourselves a lil more  Its about oil It permeates the world  Blame it on covid Blame it on supple chain  Blame anywhere you want  Go talk to Jimmy Carter  The research will show you  Oil