Falling interest rates will cause a huge asset rally

UNDERSTAND, SHARE & PUSH BACK

SUBSCRIBE, SHARE & START A CONVERSATION

Performed by Gary Stevenson
@garyseconomics

[andreww]

As an MBA (finance) - ex-NY banker ... I can tell you for certain that you MUST listen to this guy. He is literally your last hope ...

[andrewheron]

Been a financial adviser for 25 years. Been telling clients this for years. Ignore the fear and greed and just stay invested.

[josephrobinson]

You will own nothing and be happy is becoming true. We can consume products but we can't afford to buy assets and build a secure future for ourselves.

[nzofhull]

Imagine a guy like this has barely a few hundred likes each video, and an oxygen thief like Tate gets millions. What a circus we live in.

[amandajones]

Protect this man at all costs. He actually makes sense!

[sylvainmirouf]

As an ex-East 17 and Charlie fan, I can tell you for certain that you MUST listen to this man.

[dorthyadams]

I am listening. Your voice is being heard, though you be one I hear your heart and your message is correct. We are intentionally being pointed in the wrong direction by all the noise, not to fix the problem, but make wealthier.

[LMSapper]

Seems like it’s actually a triple whammy:

Increasing inequality = assets go up.
Decreasing interest rates = assets go up even more.
UK is a services-based economy so average Brit can afford less due to lower wage growth and is more likely to be negatively effected in a potential recession further compounding and entrenching inequality. Damn.

What assets are likely to go up? House prices, gold, Tech stocks while earnings are still good, residential REITs if rates hold, mortgage-lending bank stocks and longer-term bonds if rates decrease? Maybe BTC as a speculative asset? Anything I’m missing or I’m wrong about?

Love the channel Gary, I’ve learnt a lot!

[pathfinderwellcare]

Brother Gary - what I want to know is what can we actually do about any of this? This is a sincere question.

[airla-sophia]

I’m loving these shorts/clips. Very succinct. Very informative. Amazing hat.

[gordon]

As an engineer this makes perfect sense. The economy is just a system like any other. Inflation is a set of sensors measuring a value and the central bank controls that system by controlling the interest rate. This would be fine if they looked at all the data. But if the system doesn't look at some of the data (asset prices) then how can we expect a healthy economy?? The control system is fundamentally flawed because it's ignoring aome crucial data. This cannot be a mistake.. they are doing this on purpose.. misrepresentating data and maintaining the status quo because most people simply cannot understand whats actually going on and therefore will blame immigrants.. which is great for politicians etc but the average person suffers as a result.

[BombusMonticola]

Hey Gary I've finally keyed myself in to your take on things. Thank you. Youre right obviously.

[IOSALive]

Garys Economics, amazing content it was really good

[hoochygucci]

That was happening for 13 years after the GFC. Not news. We already have the biggest asset bubbles and debt in global history.

[davidmcculloch]

Great insight. We ignore asset inflation as we move to a rentier economy to benefit the richest and exacerbate inequality. In parallel, we focus on the national debt in relation to GDP (which is estimated) and ignore state-owned assets as they would appear on a corporate balance sheet.

[BradWendesPod]

Baffles me that so many people who aren’t super wealthy are resistant to taxing the rich.

[karlbates]

There almost needs to be an Asset CPI that would track the inflation in a 'basket' of asset goods. This would give a better indication of inflationary pressures from areas such as the housing market.

[robween]

Eventually assets will be completely owned by super rich and ordinary people would be paying the rent to use them to the super rich.

[richardisaacs]

CPI is one of the dumbest measures used to identify the current economic status.

[SportLife]

And that is why western economies are measured by the stock market prices