Both interest rates and inflation are indicating that we might not have fully overcome the economic challenges caused by the pandemic. The Federal Reserve (the Fed) is actively trying to control inflation by adjusting interest rates. However, this effort is causing significant fluctuations in the market’s stability.
Over the past few weeks, we’ve witnessed notable swings in the market. In this video, Ed Butowsky delves into what investors should pay attention to. Normally, this topic might primarily concern only those who invest in bonds and fixed-income assets. Yet, it’s becoming evident that these developments are also affecting the equity markets, which are associated with stocks and ownership in companies.
Summary:
- The aftermath of the pandemic’s economic impact might not have concluded, considering the ongoing increase in interest rates.
- Both housing and non-housing sectors are experiencing a growing total debt burden, as clearly depicted in the video’s charts.
- Elevated interest rates translate to higher corporate interest payments, consequently leading to reduced company earnings and potentially underperforming stocks.
To learn more about Chapwood Investments, check out the rest of our site by exploring the links above. You can also view our YouTube channels by clicking the links below.
Making Sense with Ed Butowsky: https://www.youtube.com/channel/UCQO3uuHbcHof7v2o6L3De0A
Chapwood Investments (New): https://www.youtube.com/channel/UC8jX4GxKLOPat1Uj7Hi7b8Q
Chapwood Investments, LLC is an SEC Registered Investment Advisory Firm (SEC.gov). No mention, opinion, or omission of a particular security, index, derivative, or other instrument in this webcast or video constitutes an opinion on suitability of any security. The information and data in this video were obtained from sources deemed reliable. Their accuracy and completeness are not guaranteed. At any given time, principals at Chapwood Investments, LLC may or may not have a financial interest in any or all of the securities or instruments discussed in this webcast or video. The guests appearing on videos do not receive compensation or provide endorsements or testimonials. Past performance is not indicative of any future results.