Big Short Investor's Warning About Interest Rates in 2024

Steve Eisman (of The Big Short) has recently taken to CNBC to warn investors about the state of the stock market in 2024, including why he believes interest rates are likely going to stay higher for longer. He also discusses the AI hype in the market and whether investors should consider the magnificent 7 stocks in 2024.

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★ ★ CONTENTS ★ ★
0:00 Eisman's Thoughts On Interest Rates
5:10 A Repeat of the 1970s
6:43 Why The Fed Won't Lower Rates
7:42 The U.S. Debt Problem
9:52 Ray Dalio vs Steve Eisman
12:00 Will AI Power Stock Returns in 2024?
14:50 Steve's Opinion on the Magnificent 7

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[NewMoneyYouTube]

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[DonaldMark-nese]

I see the rising interest rate as a very big problem, as more investors will definitely pull out more money from the Stock market. This might have worked when I was still invest-ing with a couple thousand dollars, but it is more difficult now to decide whether to pull out more than $365k from my port-folio. I know some inves-tors still make that despite the strong bear market. In wish I could pull that feat

[GarridoLuis]

It's a common misconception that when a stock you buy skyrockets, the smart thing to do is sell it (or at least sell some of it) to lock in your profits. But the context matters. If the stock has increased sharply because the business is performing exceptionally well, it could still be a bargain. I'm still looking for companies to make additions to my $350K portfolio, to boost performance. Here for ideas...

[IsabelleMarie-mg]

There is obviously a compounding effect in the very long term for large capital, but is not "automatic", and with the wrong strategies you can even lose more than you have. I'm still looking for companies to make additions to my $350K portfolio, to boost performance. Here for ideas...

[BCFC]

Man the bots on financial channels are annoying

[xavier_lucas]

It's quite simple why rates are climbing with rising imports and falling exports, the FED is obviously to be blamed for banking crisis. Something will eventually break if they keep the quantitative tightening and higher interest rates. Is this really a good time to have some savings in stocks?

[andersonedward]

Market highs can sometimes be followed by corrections, but predicting the timing and extent of it is challenging. I've heard some analysts talk about a 'massive' correction. It makes me wonder if it's time to adjust my $2M portfolios or maybe even consider some defensive investments.

[EloiseLittletonn]

I feel investors should be focusing on under-the-radar stocks, and considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises of plummeting stocks which were once revered and i don't know where to go here out of devastation.

[OBrienHayden-guqb]

In the middle of 2024, I think we'll start to see more market diversification. I'm hoping to invest about $300, 000 from a recent home sale into the financial markets, but I'm still not sure how rates will effect the market just yet, which worries me a lot. Like how long will the bull rally last before the reset?.

[VictoriaWood-ucmp]

Great video, I have always wanted to invest and start my retirement plans early enough, but I never did. I hope it is not too late for me? I will like good advice on how I can start up my retirement and put up some investments as well. This world in getting more difficult to live in everyday. One needs to prepare for the future and kids inheritance.

[RaymondcrawRaymondCrawley]

This real estate market collapse might end up being a part of us for a very long time. With inflation currently at about 9%, my primary concern is how to maximize my savings/retirement fund of about "$300k" which has been sitting duck since forever with zero to no gains.

[jameswood]

Rate cuts commence in June 2024, taking 6-8 months to complete. A potential crash, if any, might occur by March 2025. The soft landing narrative is gaining traction, making this big recession everyone is calling for less likely. With $1 million from a business sale, I'm seeking profitable investment opportunities for the next 3 years.

[johnben]

I've heard that some experts are pointing to factors like rising inflation and the possibility of interest rate hikes as potential triggers for Treasury market instability. It's making me rethink my investment strategy, especially with my stocks portfolio of $400k declining over 35%

[Millerdelo]

I’m 45, $800K net worth. Been saving 50% of my salary, investing in stocks & living below my means. I'm trying to avoid new buys now in order not to get sucked into a bear trap. On the other hand, I’d love to know best possible areas and ways to invest amid downtrend. I’m worried with the numerous bank failures as of late or do I wait?

[larrygerry]

A minute looking at interest rate estimates is a minute wasted

[CynthiaMLevi]

I really appreciate the dedication in each video you post. To be successful in markets, traders should understand the crossover between asset classes & liquidity flow. Desiree Madison focuses on Multi-asset trading, a single strategy to manage risk, profit, and the code or the actual decision-making across multi-asset classes. Her skills set is top notch.

[fredm]

Honestly, this concerns me and has left me uneasy. Especially the potential inflation. I'm unsure about my $130K account strategy, considering the uncertainty of a recession mostly.

[Duetkanha]

AMS590X and Bitcoin are the two top choices. I would start with them. I consider them must buys. The others I like and hold is Cardano and Gala. In time I feel they will go higher than they are. Probably 2025 when the next bull run happens. AMS590X real cheap to buy in right now so the future profit will be sweet. I also hold Shiba Inu but that's a risky investment and not something I would suggest to anyone new.

[hyperhippyhippohopper]

If you're a beginner investor, here's my advice: Speculating about interest rates is a complete waste of time because it's unknowable. The only interest rate worth considering is the current interest rate. All the great investors of the world know this, including Warren Buffett, Steve Eisman, Bill Ackman etc and they completely ignore any speculation about future interest rates when making investment decisions. The only reason Brandon is discussing this topic is because he knows people love speculating and it makes for easy content to generate ad revenue for himself.

[sunseeker]

In 2021 Central Banks said they wouldn't raise rates until 2024.

I ignored Central Banks in 2021 and fixed my rates for 5 years at 2.8%.

Moving forward...inflation will be much stickier than expected and thus rates won't be cut anytime soon.

Furthermore, the S&P will tank when the dumb money finally realises that the Fed ain't providing any stimulus this year.