How The Government’s Bank Shapes The Stock Market

When members of the Federal Reserve make public statements, investors tend to listen. Over the past 2 decades, central bankers have consistently shared key information about the future trajectory of important inputs like interest rates. The Fed's forward guidance on interest rates amid historic inflation has taken stock markets for a ride in 2022. As investors wait for a pivot, a panel of experts explain why many in the market choose not to fight the Fed.

Producer: Carlos Waters
Supervising Producer: Lindsey Jacobson
Editor: Amy Marino
Camera: Blake Griffin, Magdalena Petrova

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How The Government’s Bank Shapes The Stock Market

[bobbymainz]

How to Hedge Against Inflation: Keep some extra cash on hand, Invest in Various Assets (stocks, real estate, etc.), If you are going to take on debt, better to take it on earlier (assuming you can pay it) before interest rates rise. Refinance

[rebeccaartgallary]

As the price increases, why would the yield increase? Would it not stay steady at best case scenario? It is a percentage of the sale price. For someone with less than $90K to invest, how would you recommend we enter the stock market?

[mamafane]

A lot of folks have been going on about a December rally and said stocks that would be experiencing significant growth these festive season, any idea which stocks this may be? I just sold my home in the Boca Grande area and I’m looking to remunerate a lump sum into the stock market before stocks rebound, is this a good time to buy or no?

[dominantnat]

The most important thing that should be on everyone mind currently should be to invest in different sources of income that doesn't depend on the government. Especially with the current economic crisis around the word. This is still a good time to invest in various stocks, Gold, silver and digital currencies.

[stevenbergwin]

The stock market rally run is over but I don't know if stocks will quickly rebound, continue to pull back or move sideways for a few weeks, or if conditions will rapidly deteriorate.I am under pressure to grow my reserve of $250k.

[joesphcu]

I would be retiring or working less in 5 years and I just want to know best how people split their pay, how much of it goes into savings, spendings or investments. I earn around $165K per year but nothing to show for it yet.

[michealwrubell]

Yes stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are alot of wealth transfer in this downtime if you know where to look.

[michealliam]

I always watch videos on cnbc and I shared your video links with four friends of mine, I love how open minded you are about Investing, I read an article of investors that made upto $500, 000 within months from stocks like tesla nasdaq s&p 500 etc... So please I'd really love more tips and clues on how to make such profits in the stock markets

[Stephenfanos]

I appreciate your approach to teaching.. To my understanding this just proves how much we need an edge as investors because playing the market like everyone else just isn’t good enough, we just need to hold onto our hopes and wait to see how things turn out because market movements are almost always unpredictable. In my portfolio, I'm noticing more red than green.

[FinancialShinanigan]

Finally, English majors have a career in deciphering the Feds

[Natalieneptune]

My portfolio has good companies, however it has been stalling this year. I have approximately $600k stagnant in my reserve that needs growth.

[ConradGosling]

I am aware that continuing to invest during periods of volatility can be a smart way to build wealth. I’ve heard testimonies of people accruing over $250k in this red period. What measures can I take to achieve this?

[zoeytank]

Investors have a lot to think about and losses to make up after a dreadful year in 2022. The Federal Reserve is expected to continue raising interest rates even if the economy slows down, which implies that portfolio returns will be negative in the first quarter of 2023 despite an inflation report and a wealth of other data. In this shaky economy, how can I generate money? Yet debatable is my $250k bond and equity portfolio.

[fierce]

Basically, I grew up believing we live in a free-market economy and stocks are driven by supply demand, but this year I've learned that we live in a Fed controlled market. Fed decides when stocks go up and down, not business performance. Companies that sold out on their product and hit all their benchmarks still lost 50% of their stock value. It's a manipulated and controlled market to maintain status quo for the rich and elite investors who understand precisely what the Fed is about to do. All the recent layoffs and people suffering job losses were not due to business requirements, but due to Fed's forward guidance.

[maiadazz]

Inflation can have a significant impact on individuals and their cost of living. As a result, it can cause negative market sentiment. It is important for individuals and businesses to find ways to navigate and potentially mitigate the effects of inflation on their finances. The current economic climate, including underperformance of financial markets due to fear of inflation, has led to a decrease in the value of my portfolio. I would appreciate any recommendations on how to potentially increase returns during this market downturn.

[Rachelschneider]

A round of applaud for the great analysis and breakdown of personal perspective. I woke up to the sad news by FTX. The market circumstances are driving me insane, my portfolio has lost almost 18500 this month alone, my earnings are tanking, and I can't see how my retirement will go smoothly when I can't even increase my stagnating reserve. I wonder whether those who lived through the 2008 crash had it easier.

[harryrichard]

People come here with the aim of chasing money more than knowledge and that will damage your progress, trust me. Chase knowledge first and I promise! The money will follow you just like it's following some of us now

[taylorgreen]

what should be on everyone’s mind currently should be to invest in sectors based on performance and projected growth, pretty much how i made my first million. Especially with the current economic crisis around the world. i'm taking advantage of the low prices. I have a diversified portfolio that spread across stocks, grade bonds, coins and etfs. my broker James Fletcher Brennan, handles all my investments and ensures I stay above the market.

[shaunstark]

The federal reserve is a private corporation

[mookm]

No where in this analysis did I hear the phrase “planned economy” which is exactly what we have. It is not a free market.