Why did the Fed wait until March 16, 2022, to raise the Fed funds rate from zero to 0.25 percent, with inflation running at 8.55%? Why did the Federal Reserve’s expansive monetary policy, known as ZIRP (zero interest rate policy), create bubbles in crypto, SPACS, meme stocks, and unprofitable technology companies and then burst it?
read more FED’S ZANY ZIRP FLUB-UP
“Hire people who know how to handle money, understand financial concepts, and pay them well. Hold them accountable for their decisions.” – Warren Buffett It Is Not Personal. It Is Strictly Business. Remember, when it comes to firing your financial advisor, it is not personal; it is strictly business. Your relationship with your financial advisor
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SHORT VERSION — RATES FALL On October 24th, the 10-year treasury note closed at 4.23%. The S&P 500 fell to 3,577 on October 12th. Are these two dates relevant to our economy, homebuyers, savers, and investors? This data can be helpful in making decisions down the road. LONG VERSION — WHY BONDS The bond market
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SHORT VERSION → Inflation Reversion Core Inflation has averaged 3.2% over the past 62 years. Core Inflation is currently 5.1%; the FED’s target rate for inflation is 2%. How long will it take for Core Inflation to revert from 5.1% to 2%? Take notice during the 70s and 80s when inflation spiked above the 2%
read more “Inflation is when you pay fifteen dollars for the ten-dollar haircut you used to get for five dollars when you had hair.”
POWELL SPEAK: “WE DO NOT KONW!?” A few different terms are often used to describe markets that are overvalued or otherwise considered to be in a “bubble.” 1. Overheated – This is perhaps the most common term used to describe a market that is considered to be in a bubble. An overheated market is one
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