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What's up you, graham it's guys here and it's official, the stock market is backwards. Throughout the last week, news came out that retail sales are jumping company. Earnings are soaring employment, growth accelerated by the highest level in 10 months, and all of that should be fantastic news for the market. But it's not in fact.

The stock market started to immediately sell off, and all of that great news was overshadowed by one of the economy's greatest fears. Wait for it: inflation which increased at a rate of 5.4 percent, the largest move in the last 30 years. That sudden burst of inflation was a lot higher than what the federal reserve and most economists anticipated. Other members of the federal reserve say that now might be the time to pull back and eventually eliminate the stimulus that was put in place to keep our economy afloat and, if that's not done correctly, then the stock market could fall.

That presents a really unique problem for investors right now, where, if you hold on to too much cash you'll lose value if you're invested in the stock market. Well, that could fall once the fed reduces your stimulus and if you just want to drive far far away and pretend like none of this even exists. Well, you can't, without spending 30 more for a used car and 40 more for gas. So we got to talk about exactly what's going on, why the fed issued a warning for inflation, why prices are suddenly rising faster than the temperatures in las vegas and then finally, how you could invest your money moving forward, but before we start it would mean a Lot to me, if you inflated that, like button for the youtube algorithm by giving it stimulus until it turns blue and best of all, if you actually do that, i will do my best to respond to as many comments as i can.

So. Thank you guys. So much and also big, thank you to roman for sponsoring this video, but more on that later, all right! So here's what's going on and what's led up to the point where now the better the economy does the worse, the stock market performs, while everyday prices continue going up higher than anybody expects. Almost all of this begins in march of 2020, when the federal reserve lowered their benchmark interest rates all the way down to zero percent in an effort to help stimulate the economy through the beginning of the pandemic, but alongside lower interest rates, they also did something that Was unprecedented in addition to several trillion dollar stimulus packages that were created to help keep businesses and people afloat, the federal reserve agreed to start buying corporate bonds, which is a really fancy way of saying the fed is injecting a lot of money into the economy directly Through businesses to make sure things don't get too bad now from their end, this is a really calculated move because they theorized that if people felt the economy was going to continue falling, they wouldn't lend money.

We would fall into an even deeper recession. Prices would continue falling and we would be in a much worse position, so instead the fed stepped in and said if anyone needs money right now, not a problem, we'll lend you whatever you need for free, just agree to pay us back and that in turn helped Boost the confidence that, if the fed is guaranteeing all of these loans, businesses will continue to operate and everything will be okay. You know what it worked shortly after the announcement. The stock market began to skyrocket into one of the strongest bull markets in history, but there was a cost.
Some people questioned that the federal reserve was ruining the functions of the free market and the role of what was supposed to be an independent central bank. That's because the fed provided an artificial temporary boost to the market that could only go on for so long until eventually it ends and from there the market's going to be going to a level that it could actually support on its own. The issue now is that that moment might be happening sooner than expected. Now, on the surface, here's what the headlines tell you.

Consumer prices rose nearly one percent between may and june, which is nearly double what economists predicted it would be. It was also a whopping 5.4 higher than it was in june of 2020.. Beyond that median rents nationwide also went up another 8 from a year ago, with the concern that now minimum wage is officially not enough to afford rent anywhere in america. In fact, the recent report shows that a worker would now need to earn 24.90 an hour to afford a two-bedroom home at fair market, rent or 20.40 an hour for a standard one bedroom, and that, of course, begs the question.

How much of this is due to inflation and how much worse can things get? Well, most recently, the federal reserve said on record that they believe there are three main driving forces behind why prices are getting so unbelievably expensive. The first one they say is because of supply chain bottlenecks. I would say the best example of this with context to inflation is with a chip shortage, limiting the production of new vehicles and causing used cars to double in price from a year ago, that alone made up for a significant portion of the overall inflation metric and Made it seem a lot worse than it actually was, or in other words, if you calculate inflation without considering used car prices, it's going to look a lot lower. The second.

They say that extraordinarily high demand is pushing up prices higher than normal. This is evidenced by the fact that travel related expenses like gas, fuel and rental cars, are all seeing higher prices, along with increased demand for airfare and hotels. Restaurants are also a lot more busy, while their prices have gone up 4.2 percent from a year ago. The reopening of our economy really just sparked a lot of pent-up demand that wasn't ready for everybody all at the exact same time, and that, of course, is lifting up prices.
Alongside with it and third, they say it looks way worse than what it actually is, because we are measuring year over year during a time where our economy was struggling and sure enough. As you could see from the chart, we saw one of the largest and quickest inflation drops in history as the economy shut down. So now, a year later, we're going to appear artificially higher when you calculate it from the very bottom a year ago and in the big picture, when you zoom out over the last 10 years, you could see that overall, inflation is still around an average of 2.2 Percent, all things being equal, but still the bigger question, remains, with inflation coming in way. Higher than expected, they've expressed concerns about dialing back stimulus and the impact that could have on the entire stock market, which is still going down so what's going on.

But before we go into that real talk as it turns out, 87 percent of my audience is male and we're not getting any younger. I don't know what happened, but all of a sudden i hit 30 and boom. Now i need eight hours of sleep every night. I got ta eat healthy.

I got ta push myself to stay active, otherwise you become a potato, but thankfully our video sponsor today, roman, is here to help roman is a digital health clinic for men with daily nutritional supplements to help your body perform its best, and now they got a new Product designed to support testosterone production like as you get older testosterone, begins to naturally decrease in the body, which is why roman has developed products for anyone who wants to help support their body's own natural functions. They use a unique blend of transparent and scientifically backed ingredients designed by healthcare professionals that you can't get anywhere else and best of all, because you smash the like button and you have good taste in youtube channels. Roman is offering 15 off your first order, plus free two-day shipping when you go to getroman.comgram, just go to getromand.comgram, to learn more and get 15 off of your order, plus free shipping link in the description. So, thank you guys so much and now, let's get back to the video all right so in terms of the fed wanting to scale back on their stimulus and the potential impact that could have on the entire market.

Here's what you need to consider right now: the fed is purchasing 120 billion dollars worth of government bonds and mortgage-backed securities every single month to drive down record low interest rates and give you a chance to borrow money at record lows that in turn introduces more money Into the economy and as more money enters the economy, there's the risk that further devalues our money and sends the cost of everyday items even higher, like kind of what we're seeing today. But now inflation is getting a little bit too high and even the fed. Just recently said that upward risks to the inflation outlook are increasing in the short term, increasing the likelihood that inflation surges will last longer than originally anticipated. On top of that, the fed also said that they acknowledge that they might need to respond to higher than expected price pressures and that we have the tools to deal with it, but in ways that are unnecessary or hinder the economic recovery.
The wall street journal also reported that it was important to be well positioned to reduce the rate of asset purchases, if appropriate, in response to unexpected economic developments, including faster than anticipated progress, or, in other words, they're. Basically saying that if inflation persists and prices keep rising faster than expected, their plan is to taper back on stimulus, increase, interest rates and hope, that's enough to prevent prices from rising even further, and even though that was originally planned to happen in 2023. Now some say this could happen as soon as the end of this year. On the one hand, if this happens, it is a sign that our economy is recovering and can actually withstand a little bit less stimulus.

But, on the other hand, this could be bad for the stock market, which has largely grown reliant on cheap rates to boost prices, and it's not just the stock market that could see an end of stimulus as of right now, the unemployment boost of 300 a week Is scheduled to end in september the 250 a month, trial, tax credit is going to last through the end of 2021, with the rest of it coming when you file your tax return and after that, if nothing else is passed, then the economy is on its own. So that then leaves us with this, even though they say inflation is going to be temporary due to high demand supply chain shortages and year-over-year calculations from the bottom of the market. If it continues to stay as high as it is now, they're going to have no other choice other than to raise rates and stop injecting 120 billion dollars into the market every month, and if that happens, here's what this means for you and what you could do About it from the stock market's perspective, uncertainty is one of the main driving forces of the market right now, not so much inflation or interest rates. That's because, once the stock market knows the direction we're headed or the results of a highly anticipated earnings report, it could immediately adjust for those factors and then carry on as usual.

But when you have higher than expected inflation, the strong likelihood that stimulus and low rates could end sooner than expected, and the uncertainty about whether or not strong earnings could be sustained without a boost to the economy. Then you have a market that panics in prices in the worst possible case scenario. In a way, the stock market really is backwards right now, because you would assume that good growth, strong earnings and a reopening economy would be great for your investments, but it's not since the market is forward. Thinking.
Good earnings and strong growth could already be priced in and now with stimulus, ending. What more is there to look forward to when people have less discretionary income to spend? If anything, the worst news we see right now, the better it is for the stock market, because that means that low rates and stimulus last even longer so really nothing makes sense up is down, and i wouldn't be surprised if we continue to see a lot more Volatility through the rest of the year now that doesn't mean that you should sell all of your investments, but it does mean that you should brace yourself that anything can happen. Nothing is rational and if the market continues to drop just stay the course and buy in as usual. Now from your perspective, the federal reserve has made it clear that they think inflation is going to persist longer than they expect now.

Unfortunately, minimum wage workers are likely to be the ones hit hardest from rising inflation, since studies have shown that inflation-adjusted wages have barely increased since the 1960s, while the cost of living continues to get more expensive each and every year. The fact that a two-bedroom is now unaffordable on minimum wage anywhere in the united states really highlights the severity of persistent inflation and the lack of affordable housing. That just means, as far as what you could do about this from here on out, if you're investing make sure to stick with solid long-term companies that you could hold on to for decades and then don't sell. The entire economy is rather fragile.

Right now and even the slightest little panic can freak everybody out. So don't do that and just hold a recent study even confirms that if you would just miss the 10 best days in the market over the last 15 years, your overall return drops by more than 50 percent and if you miss the best 20 days, your return Drops by more than 70 that's why buying and then continuing to buy in without selling is going to be the best strategy to make the most amount of money long-term. You could also look to refinance or lock in a really low interest rate now before they eventually go up. That's exactly why i've chosen to keep my mortgages for as long as possible at the lowest interest rate i could find now if we do see longer and worse than expected inflation that just makes debt easier to pay off in the future and when my interest rates Are 2.8 fixed for the next 30 years? Inflation above 3 essentially means that they're paying me to borrow money, so i may as well just use that to my advantage, because it's an incredible concept beyond that, though, day to day, it's probably just a good idea to be a little bit more observant in terms Of what you're paying shop around for the best deals and then track your expenses, these are certainly reasonable habits to have at any time and not just today.
But if prices do continue going up, then saving a little bit more money never hurt, and you should always just look to get the best deals anyway. Personally, i think we're going to see longer and worse inflation than what the federal reserve expects and that might prompt them to raise interest rates a little bit sooner than expected. But i don't think what we're seeing is permanent. Eventually, things will return to normal and that's why i think the best strategy right now is to keep buying hold as usual and smash the like button for the youtube algorithm.

So with that said, you guys thank you so much for watching. I really appreciate it as always make sure to subscribe and also feel free to add me on instagram, i posted pretty much daily. So if you want to be a part of it, there feel free to add me there. As on my second channel, the gram stefan show i post there every single day - i'm not posting here.

So if you want to see a brand new video from me every single day, make sure to add yourself to that. And lastly, if you want a totally free stock, now worth all the way up to 70 use the link down below in the description and sign up for public and plus, i'm posting all of my own stock trades on there. So if you want to be a part of it, the link is down below in the description. Thank you guys so much for watching and until next time,.


By Stock Chat

where the coffee is hot and so is the chat

35 thoughts on “Inflation just went from bad to worse”
  1. Avataaar/Circle Created with python_avatars Phoenix.vette says:

    I wish executives realized that if they paid their employees more they would have more money to…… wait for it….. SPEND ON THINGS THEY'RE SELLING AND INVEST.

  2. Avataaar/Circle Created with python_avatars Nun Ya says:

    Not a single mention of the term modern monetary theory? You ought to be ashamed.

  3. Avataaar/Circle Created with python_avatars Hanson W says:

    <<Lately, many cryptocurrency analysts within the space have described the recent Bitcoin frenzy as a “make or break” moment for the market. Most trαders are keeping a close eye on the asset’s trend, with the next few days being potentially crucial in determining its longer-term trajectory. B|tcoin has exhibited a parabolic movement for a very long time. This time was no different. B!tcoin witnessed a surge of around 2% in its price within 24 hours. Should Bitcoin continue this ride to the next clear target of 200MA, it actually might make its way to or even pass the $40k mark, and this is important for the sentiments to turn around. The fact remains that BTC'S price plunged more than $30,000 over the past two months following the bearish sentiment. Losses were incurred selling, over a period of time after the crash so it's important for the sentiments to turn around for a greater upward surge in the price of the assets. The bears may have control of BTC'S daily trend but it doesn’t stop a good trαder from making profits these days, making profits these days is relatively simple because as a trαder you’ve got tons of options just in case you’re not experienced enough or feel the need to reduce the hazard that comes with trαding. This is why Carlton Jefferson’s trαde signals remain the most accurate trαdes I have copied and I have earned over 7 BTƇ in my portfolio just from copying them. Carlton is an expert trαde analyst and his services are just simply out of this world and I would recommend him for any trαder looking to trαde profitably because he is a trαder like no other and he can be reached on ͲҽӀҽցɾąʍ ( ) and ահαեsαթթ ( +1 650 864 4641) for any crypt0 related inquiries you have for him

  4. Avataaar/Circle Created with python_avatars Sylvia sambalic says:

    thanks to lemohtools for they got me alot of cash

  5. Avataaar/Circle Created with python_avatars Donald Cedar says:

    I know it's better to pay the minimum on a low interest mortgage and invest the rest, but as someone who doesn't make over $100,000/yr but still maxes their: 401k/Roth IRA/HSA every year; I feel like that should be enough, and I choose to pay off my debt faster.

  6. Avataaar/Circle Created with python_avatars HUANCHAO LI says:

    The more stupid boost they do, the higher inflation it will be.

  7. Avataaar/Circle Created with python_avatars T M says:

    In order to get the $4 trillion into the economy this year, the Fed would need 100 Helicopters dropping a total of 500,000 $20 bills daily, 365 days a year into the waiting hands of Americans.

  8. Avataaar/Circle Created with python_avatars Sophia - says:

    as a 16 year old girl today’s sponsor was quite fun

  9. Avataaar/Circle Created with python_avatars Edgar Mares says:

    I am on my 20s at the moment so I'll come back to romangrant in 10 years

  10. Avataaar/Circle Created with python_avatars The Bronze Spoon Investor with Steven Labrenz says:

    Great video I really liked it!  I’m a young investor learning as much as I can right now about the stock market.  I invest in DIVIDEND PAYING STOCKS FOR PASSIVE INCOME!  My passive income portfolio is up 48% this year!!!  I’m a hard blue-collar worker and have always paid for everything myself in life.  I believe in WORKING hard & PLAYING hard!  I’m very interested in learning more wealth building strategy videos from your channel, any tips? Keep producing great content and I can’t wait to watch your next video.

  11. Avataaar/Circle Created with python_avatars Sam Owens says:

    The Federal Reserve was founded in 1913. Since then the dollar's value has fallen by 96%. The stock market has risen by 3,138,470.95%, Invest your money.

  12. Avataaar/Circle Created with python_avatars Patrick's Art Attempts says:

    The strategy that's been working wonders for me is not eating dinner. Really reducing that monthly grocery bill!! (not even joking right now lol)

  13. Avataaar/Circle Created with python_avatars Katelyn Renesse says:

    A diverse 60/40 stock/ bond portfolio alongside the S&P500 is generally my ideal investment to hedge against inflation for the average investor it provides safer returns. it has worked out best for me in achieving a million in profits on my portfolio also with the help of a investment advisor handling my portfolio. smart investing is key.

  14. Avataaar/Circle Created with python_avatars Ly L says:

    Isn’t inflation due to trade war rather than stimulus? The trade war is causing supply chain bottlenecks and passing tariffs to the consumers.

  15. Avataaar/Circle Created with python_avatars Jay Bird says:

    Even as the virus ravaged the global economy, CEO incomes shot up by 14%. We really need "wage and price controls" during major crisis like a pandemic lockdown to protect a fragile re-emerging economy, it's workers and consumers.
    Allowing this unsustainable  uncontrolled economic surge we see now after lengthy mandatory lockdowns is highly irresponsible of government planners and regulators.
    Oh, and Biden didn't win by the way.

  16. Avataaar/Circle Created with python_avatars TheGraciest says:

    ✨50% OFF high end Vintalin Sunglasses with my code MOOD50✨ no joke, treat yourself!

  17. Avataaar/Circle Created with python_avatars Lindsey Genzer says:

    I’ve worked for three years just to make $20 an hour and if they literally just raised everyone’s pay to match inflation we would all be comfortable. I went to college for
    Four years to barely scrape by. It’s all about to crash.

  18. Avataaar/Circle Created with python_avatars Matthew Lee says:

    Appreciate these videos more than you know, bud

  19. Avataaar/Circle Created with python_avatars Hans Bass says:

    What you dont seem to understand is that the fed cant raise rates PERIOD!!! No matter how high inflation goes because the debt is too high and any raise in rates will tank the stock market and the economy …period the end.

  20. Avataaar/Circle Created with python_avatars Shai Schneiderman says:

    This channel has become unwatchable. Basically digesting headlines x1.5 speed with click baity titles

  21. Avataaar/Circle Created with python_avatars Greg Speth says:

    Not one word about gold and silver ! Not one word !!!!

  22. Avataaar/Circle Created with python_avatars Dirty Dan says:

    Ah yes, the inevitable. Once people loose their jobs, and can’t pay for their new homes 🏡 foreclosures will commence. Banks 🏦 will own more land, and more properties. Then, the super rich 🤑 will swoop down, and buy them all up. Taking what left the working class has left. It’s almost like our system was designed this way?!

  23. Avataaar/Circle Created with python_avatars Shehroz Khan says:

    In support of Gender Equality we should force women to watch a your channel and smash the like button

  24. Avataaar/Circle Created with python_avatars phil spd says:

    Word on the street is bezos is destroying product on a grand scale to help control supply… 🤷

  25. Avataaar/Circle Created with python_avatars Ryan on VR says:

    It's amazing to me that guys like Graham don't see and point out the immorality of the entire system. Once you accept the evils of violence and theft to run a country and an economy (they are based on this), anything goes.

    LITERALLY.

  26. Avataaar/Circle Created with python_avatars Master Shadow Erotic Hypnosis says:

    You need to read (and understand) "The Ponzi Factor"

  27. Avataaar/Circle Created with python_avatars NickStarr210 says:

    The real problem is how to find a non self serving way to spend testosterone even when it's high. Why are we pretending not to see the forest for the trees? Geez.

  28. Avataaar/Circle Created with python_avatars Gabe Steenman says:

    Me: Alright time for me to start looking for my first car.

    Inflation:
    I’m about to end this mans whole career.

  29. Avataaar/Circle Created with python_avatars engineerstudent says:

    What's up engineerstudent, it's Graham here. Just letting you know I inflated your subscription numbers. I've just recently stumbled across your page, and I've been greatly enjoying the content. A lot of useful information. Keep up the great work!

  30. Avataaar/Circle Created with python_avatars Graham Dougherty says:

    13.5% inflation is closer to the truth. CPI is bullshit.

  31. Avataaar/Circle Created with python_avatars Ditkazbearz2 says:

    Democrats can’t run cities as they are all in deep debt or the country as they are busy doubling the debt

  32. Avataaar/Circle Created with python_avatars Kaylee Ann Sewell says:

    Here's me, the 13% of the audience that's female. Haha.

  33. Avataaar/Circle Created with python_avatars Roman's Empire says:

    Economy's greatest fear is inflation. It's second greatest fear is Biden as president..

  34. Avataaar/Circle Created with python_avatars Hugo Garcia says:

    Hey Grant I love your channel I also live in Las Vegas and Hope to meet you sometime

  35. Avataaar/Circle Created with python_avatars Hola! Building Buildercip says:

    When they stop giving away free money, and this inflation keeps up… people will soon be putting mustard and ketchup on their shoes, and trying to eat em.

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