The Fed did it!

The Fed does not set rates, has had only a marginal role in keeping rates low and its effect on stock prices is debatable. Heresy, right? On the eve of another FOMC meeting, my views on central banking myths.

[OttoBiography]

The only thing I did not understand is... why are corporate profits at historic highs? Why are stocks returning much more than in the previous decades? Of course, companies are returning more cash, but what is the underlying reason for that? If Prof. Damodaran made a vide about the reasons for such high profits, I would really look forward to seeing it. Anyway, thank you for this video!

[miroalibasic]

Thank you for lesson Prof. Aswath..ATB

[clifftanch]

There was a pretty marked selloff in 2022 – Did corporates reduce the cashflow they returned to investors?! That will tell me how well this video has aged.

[StarcraftSensei]

Well it's a pretty complex system. Quite thoughtful - but there's multiple interaction effects.. so for example, your point about record buybacks (hence high stock prices) is affected by the Fed ie that funding rates are partially low because of the Fed.. so swapping equity with debt makes sense to some level.

[marocainaujapon]

thank you for these educational videos, please keep them coming ..