Interest Rate To 2% In 2025, 'Four Horseman Of Deflation' Coming | Jim Thorne

Jim Thorne, Chief Market Strategist at Wellington-Altus Private Counsel, discusses his outlook for Fed monetary policy, market reaction to this week's 50 basis point rate cut, and impacts of deflationary forces in the economy.

*This video was recorded on September 19, 2024

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*This video is not financial advice. The channel is not responsible for the performance of sponsors and affiliates.

0:00 - Intro
2:30 - Are we in a financial crisis?
7:20 - Historic market reaction to a Fed pivot
10:20 - What markets are pricing in now
12:30 - Decade of low growth
14:52 - 2% Fed Funds rate by next year
20:00 - Bond market outlook
21:00 - Stagflation possibility
23:40 - Monetary policy mistake
25:20 - Bank of England rates
27:20 - U.S. dollar outlook
30:00 - Risks of deflation
31:48 - Is “cheap money” the norm?
34:40 - Investment implications

#economy #stocks #investing

[TheDavidLinReport]

How many more rate cuts do you think the Fed will make?


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[jerrycampbell-utyf]

First of all, this whole economic chaos was powered by optimism that the FED is done with hiking interest rates. Now that interest rate crash is the situation, where do we go from here? How would you advise I safely allocate $250k funds at this point?

[tatianastarcic]

Navigating market volatility can be challenging, it might be beneficial consulting with an advisor to provide personalised insights based on your specific situation and financial position

[Grace.h-to]

The Federal Reserve is aware. They have no intention of combating inflation. They will not stop inflating, and commodities and stocks will rise in tandem with everything else. You can't merely hoard cash and wait for the market to crash; instead, you need to make your money work for you by starting small and accelerating your purchases as the market continues to decline.

[LizaPhilips]

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 investors still make that despite the strong bear market. In wish I could pull that feat

[tammystut]

For people saying 50bps cut, I think that is unrealistically excessive, especially with inflation on the rise. Over half the market anticipates a 25 bps cut. Monetary policy decisions should prioritize economic stability, not cater to stock market speculation.

[Jamesjerome]

The belief that the Federal Reserve would stop raising interest rates was the driving force behind the entire economic chaos. What should we do now that we have a situation where interest rates are crashing? At this point, how would you suggest that I safely allocate $300k?

[gregorywhem]

Man, the Fed rate cuts are starting to mess with everything. I mean, they were supposed to help, but now I’m feeling the pinch. My savings of 600k is basically giving me nothing, and the stock market projection is all over the place.

[Izzobird]

Everyone is screaming market crash and it's getting me worried. How can I protect my investment portfolio of around 800K. I don't want to get burnt out.

[Ballesteros-d]

Sounds like a skeptical outlook on things then. With the rate cuts do you think it's best for us who are not conservative investors to focus on bonds or dividend stocks? I want to reallocate my 7-figure portfolio and I preferably want the assets with the best ROI.

[Al-yubq]

No one sells stock markets, What for? To pay taxes? No one does trading anymore. No one wants bonds anymore, and No one wants to buy Real Estate for investment anymore, too much taxes, too much insurance, too much headache. NASDAQ and GOLD TO THE MOON.

[Marquez]

Some experts think rate cuts could boost certain industries, while others warn it might increase inflation concerns. I'm reviewing my $600K portfolio allocations and I'm curious about strategies to respond to these potential sector impacts.

[paul_devos]

Really enjoyed this guest. Made some distinctions I haven't seen from other guests. Annoying amount of spam comments on this post, but great guest! thanks David!

[BillAdamson-bpff]

My wife is already panicking, so many questions! will the rate cut lead to inflation? I'm very worried about my $1million stock portfolio losing value. What strategies should I be employing in my portfolio right now?

[timothylarson]

I will tell you what's going on, , The 1% business leaders didn't like wages going up. they didn't like work from home. And they were having trouble stopping that trend. They started raising prices, started laying off, causing inflation to get worse, , all planned the whole time. Lastly they went to see their friends at the fed. To get them to stop the trend of labor getting some leverage. They ask the feds time for some unemployment. Raising interest rates will kill jobs, always does. start the downward wage pressure. Take away laborers options, Push us down and hold us down is the plan. And of course it going to work. too much power. This is completely planned, every single step!

[DaleMeese]

Going to 2% still does nothing because the common person is still tapped out. They still owe a ton on their credit cards, food prices are still high along with utilities, insurance, house repairs, on and on.

[evbono]

It’s strange to compare the covid economy to WW2 economy. WW2 US GDP was up 65%, compared to being down ~11% during covid. Plus 17 million new jobs were created during WW2, unlike during the pandemic.

[lucanidae]

All the money the US is passing out is keeping the GDP up

[bellakrinkle]

Anyone who believes the Dot Plot is nonsense is someone who begins to make sense to me. Furthermore, his level of financial sophistication is far beyond mine (who knows little about the fundamentals of markets) and the many experts we see everywhere on YouTube. He makes my head spin. The final determination of his knowledge and intelligence was when he began to talk about the psychology of investors and traders. He said people take an eternity to come to their senses. This is obvious week after week because most folks prefer to live in their safe bubbles of illusion rather than to make sense of reality. I like everything about Jim Thorne. Let's see how correct he is about his prognostications of late 2024- early 2026. Please bring him back regularly.

[philfortner]

You understand the market's when you understand that money supply and the S&P track identically. Almost like the American economy IS just printed money. We sold this country down a river and now the river is even mortgaged!