The Federal Reserve just announced they would be buying an unlimited amount of junk and corporate bonds - here’s what this means for the stock market and your money. Enjoy! Add me on Instagram: GPStephan
Get 2 Free Stocks on WeBull when you deposit $100 (Valued up to $1400): https://act.webull.com/k/Vowbik9Tm5he/main
NEW: JOIN THE WEEKLY MENTORSHIP - https://the-real-estate-agent-academy.teachable.com/p/graham-stephan-mentorship-program/
The YouTube Creator Academy:
Learn EXACTLY how to get your first 1000 subscribers on YouTube, rank videos on the front page of searches, grow your following, and turn that into another income source: https://bit.ly/2STxofv $100 OFF WITH CODE 100OFF
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
This all starts here, on March 23rd, when the Federal Reserve announced that they would purchase UNLIMITED assets in order to support the market…and, literally SINCE that day…the stock market has slowly, but surely, began to climb back to life.
https://www.cnbc.com/2020/03/23/fed-announces-a-slew-of-new-programs-to-help-markets-including-open-ended-asset-purchases.html
When companies need debt to stay afloat or expand, they’ll borrow it through issuing bonds. Now, TECHNICALLY - when the FED does this - they’re giving out loans that will still need to be paid back, but because they control the interest rate that they loan money at - they can “Essentially” give these cities, states, and business interest free loans - and the HOPE is that, that money will help everyone stay afloat - and then, when times are good, it’ll get paid back. I
But where this gets unusual is that - NOW - the FED is going to be buying CORPORATE BONDS, which is another word for - they’re lending money to COMPANIES, not just states and cities…and, even more alarming - they’re buying JUNK BONDS, which is another word for saying - they’re giving companies money, which have a riskier likelihood that they won’t be able to repay those loans back.
At the end of the day, whether it’s intended or not…when the FED goes on a shopping spree for Junk Bonds, it’s INEVITABLY going to translate into high stock prices alongside with it. When struggling companies get really attractive, cheap financing…that’s positive…and, positive news for companies equates to a higher stock market. .
Since the Federal Reserve has an infinite supply of money, they can afford to do this as long as necessary - and my guess is that they’re hoping that’s enough to get the ball rolling, and then once we’re in the clear - those companies can HOPEFULLY begin to repay back their debts.
The RISK with this is that there’s absolutely NO MORE market discovery, where companies are naturally left to fail…and, since the federal reserve has no collateral with the money they loan…they’re at the mercy of the company for actually paying them back. If that doesn’t happen…too bad, it’ll be absorbed into our national debt and things will continue on as normal.
The other concern is that, when we get SO accustomed to 0% interest rates, free money, and unlimited loans…it becomes hard to actually be self sufficient after that. Arguably, prices adjust according based on 0% interest loans…so, when one day interest rates are no longer 0%…if that ever happens, valuations will have to come down accordingly, and that’s a risky move.
We’re definitely in interesting times now - and, honestly, who knows what’s going to happen. If this keeps up, stocks might absolutely continue rising for the foreseeable future…so, it’s probably in all of our best interest to continue dollar cost averaging in the markets, diversifying as much as we can, and always smashing the like button for the algorithm.
Ryan Scribner video: https://youtu.be/VnyE2QPeiDQ
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.
Get 2 Free Stocks on WeBull when you deposit $100 (Valued up to $1400): https://act.webull.com/k/Vowbik9Tm5he/main
NEW: JOIN THE WEEKLY MENTORSHIP - https://the-real-estate-agent-academy.teachable.com/p/graham-stephan-mentorship-program/
The YouTube Creator Academy:
Learn EXACTLY how to get your first 1000 subscribers on YouTube, rank videos on the front page of searches, grow your following, and turn that into another income source: https://bit.ly/2STxofv $100 OFF WITH CODE 100OFF
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
This all starts here, on March 23rd, when the Federal Reserve announced that they would purchase UNLIMITED assets in order to support the market…and, literally SINCE that day…the stock market has slowly, but surely, began to climb back to life.
https://www.cnbc.com/2020/03/23/fed-announces-a-slew-of-new-programs-to-help-markets-including-open-ended-asset-purchases.html
When companies need debt to stay afloat or expand, they’ll borrow it through issuing bonds. Now, TECHNICALLY - when the FED does this - they’re giving out loans that will still need to be paid back, but because they control the interest rate that they loan money at - they can “Essentially” give these cities, states, and business interest free loans - and the HOPE is that, that money will help everyone stay afloat - and then, when times are good, it’ll get paid back. I
But where this gets unusual is that - NOW - the FED is going to be buying CORPORATE BONDS, which is another word for - they’re lending money to COMPANIES, not just states and cities…and, even more alarming - they’re buying JUNK BONDS, which is another word for saying - they’re giving companies money, which have a riskier likelihood that they won’t be able to repay those loans back.
At the end of the day, whether it’s intended or not…when the FED goes on a shopping spree for Junk Bonds, it’s INEVITABLY going to translate into high stock prices alongside with it. When struggling companies get really attractive, cheap financing…that’s positive…and, positive news for companies equates to a higher stock market. .
Since the Federal Reserve has an infinite supply of money, they can afford to do this as long as necessary - and my guess is that they’re hoping that’s enough to get the ball rolling, and then once we’re in the clear - those companies can HOPEFULLY begin to repay back their debts.
The RISK with this is that there’s absolutely NO MORE market discovery, where companies are naturally left to fail…and, since the federal reserve has no collateral with the money they loan…they’re at the mercy of the company for actually paying them back. If that doesn’t happen…too bad, it’ll be absorbed into our national debt and things will continue on as normal.
The other concern is that, when we get SO accustomed to 0% interest rates, free money, and unlimited loans…it becomes hard to actually be self sufficient after that. Arguably, prices adjust according based on 0% interest loans…so, when one day interest rates are no longer 0%…if that ever happens, valuations will have to come down accordingly, and that’s a risky move.
We’re definitely in interesting times now - and, honestly, who knows what’s going to happen. If this keeps up, stocks might absolutely continue rising for the foreseeable future…so, it’s probably in all of our best interest to continue dollar cost averaging in the markets, diversifying as much as we can, and always smashing the like button for the algorithm.
Ryan Scribner video: https://youtu.be/VnyE2QPeiDQ
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.
🙌VENTURING, into the trading world without the help of a PROFESSIONAL, trader and expecting profit is like turning water into wine you would need a miracle, that's why I trade with Mrs Rhonda lynn, her skills set exceptional🤝
I like uvxy to short the impending market crash
This is literally the market boom right know
Artificially making the market attractive by a money loosing, stock pumping hedge fund. That looses billions of dollars on purpose to drive up prices.
Traders can try all the strategies they see on YouTube. But I can tell for a fact most will still lose money due to improper knowledge on how the liquidity providers manipulate the stock charts, that is why the importance of investing with a good broker can not be over emphasized.
Do a quick google search for ECOM BAZZOID someone posted your courses Graham
Do a quick google search for ECOM BAZZOID someone posted your courses Graham
But we do know what is going to happen with all this insanity. The whole economic system in the USA will collapse, and is in the process of doing so now. You cant have a fake stock market forever.
Your telling people to lose their butts by dollar cost averaging into the stock market now?! This is the time that you get out of the market and watch it come crashing down, your a fool to think otherwise. Gold and silver is where you need to be right now, your advice is leading people off a cliff…idiot.
The federal reserve is MANIPULATING the stock market…they are MANIPULATING stock prices!!! This is legal?
Great job explaining this! I learned a lot!
The fed is buying junk bonds but nobody is helping landlords. Something stinks about this. Could it be that 50% of landlords are mom and pop with up to 3 properties?
Good luck for 3 years if you click the acorn, you won’t regret it
1929, 2008, 2020. Capitalism doesn't work. People are so afraid of socialism like it's a dirty word. Well, guess what? Those multi-billion dollar corporations are continually getting free handouts on our tax-dollar backs. Nuff said.
Hey, poor people, struggling to pay your mortgage? Real estate investor would love to steal your equity position by allowing you to sell at a 40% loss on your equity, just sign right here ________.
Capitalism for the poor and corporate socialism for the rich. Yep all is well…
when they ask to smash the like button i automatically press the dislike button.
Too many damn ads!!!!!! I won’t be hitting the “like” button until these damn ads go away!!!!
Ok, so socialism is bad when it' for regular people, but perfectly fine for the large corporations.
Or it would be like US politicians not being able to take foreign money for their campaigns, so the own a foundation that pays them. The foreign money is given to the foundation, then the foundation pays the politician. Cough* Clinton Foundation
My portfolio has also grown tremendously these past 2years courtesy of Francis Martins my financial broker.
Smashing the like button
The stock market is just gambling. I knew when the FED starting pushing money into the stock market it's 2008 all over again, Inflation here we come Venezuela, Russia, Greece, Hello, we can't learn from your mistakes or history.
Money printer go brrrrrrrrrrrrr
Hello gram! Hope you’re doing great I’m just getting to watch some of your recent videos
Am I the only one who HAS NOT GOTTEN ANY MONEY?
Is it me or did Mark Moss cover the exact same content as this video a few days after Graham posted this, in a video with the SAME EXACT title? 🤔