Treasury Yield have been rising and the stock market has been dropping - here's what this means, how you should invest your money, and the entire impact on Real Estate - Enjoy! Add me on Instagram: GPStephan
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TREASURY YIELDS:
This is how much the US Government will pay YOU, if loan them money. So many investors are buying up SHORT TERM US TREASURIES, that they’re driving down the yield to the point where, very soon, investors would rather GET A NEGATIVE INTEREST RATE ON THEIR MONEY, simply because they believe that’s the safest place for it to be….IN THE SHORT TERM.
Long term, however - it’s a different story. The benchmark that most institutions look at when determining how much THEY will CHARGE YOU in interest is the 10-year treasury yield, because this gives a much longer timeframe in terms of how our economy might be doing…and lately, those yields have been going UP.
This means that fewer and fewer investors are buying the 10-year bond, which causes the effective interest here rate to go UP…and the higher this number goes, the higher OTHER interest rates need to be to remain competitive. This means, NOW…the general consensus is that there’s a high likelihood that interest rates are finally going to start to creep back up, which means the cost of borrowing money gets more expensive, which means growth might finally begin to slow down…and that’s a concern.
HOUSEHOLD DEBT:
Now, even though it might SEEM like a giant concern that household debt is at its highest level ever…I actually see it as a quite reasonable response to REALLY, REALLY low interest rates…and, it makes sense that people are taking advantage of this.
Obviously, this CAN be risky if you’re pulling out money and speculating on meme stocks…but, for the level-headed, practical investor - refinancing a mortgage, and investing back in the stock market throughout one of the fastest drops we’ve seen, is a fairly REASONABLE approach, all things considered.
WHAT THIS MEANS FOR THE STOCK MARKET:
I wanted to know - do rising interest rates lower stock prices? Well, the surprising answer is…sometimes it does, but not every time. Historically…throughout the 1980’s and 1990’s, interest rates went up, but so did the stock market. Rates then plummeted after the dot com bubble, and stocks kept falling, even as the interest rate continued going down. Then throughout the mid 2000’s…interest rates went up alongside stocks until 2009, when rates have stayed fairly low ever since.
The takeaway is that SO MANY OTHER FACTORS influence the stock market OTHER THAN just interest rates. Instead, IF we see a drop, that’s a good reminder to stay diversified, keep buying in, keep holding, and no matter what happens - diamond hand your long term investments.
WHAT THIS MEANS FOR REAL ESTATE:
As far as whether or not rising interest rates impact real estate values - it’s difficult to say. The simple answer is, YES - rising rates do affect the affordability of homes, but other factors - like, inflation, supply and demand, and the local economy make just as much of a difference, as well.
If you’re a LONG TERM INVESTOR, meaning - you don’t need this money for the next 10-20 years, which should probably be most of you watching if you’re under the age of 40 years old…then whatever happens in the short term doesn’t matter much, and you should keep buying as usual. If we see a drop, don’t panic - keep buying - and and leave it be.
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.
ENDING SOON: Get 2 FREE STOCKS ON WEBULL when you deposit $100 (Valued up to $1850): https://act.webull.com/k/Vowbik9Tm5he/main
JOIN THE WEEKLY MENTORSHIP - https://the-real-estate-agent-academy.teachable.com/p/graham-stephan-mentorship-program/
THE NEW PODCAST: https://www.youtube.com/channel/UCMSYZVlQmyG8_2MkIKzg0kw
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
TREASURY YIELDS:
This is how much the US Government will pay YOU, if loan them money. So many investors are buying up SHORT TERM US TREASURIES, that they’re driving down the yield to the point where, very soon, investors would rather GET A NEGATIVE INTEREST RATE ON THEIR MONEY, simply because they believe that’s the safest place for it to be….IN THE SHORT TERM.
Long term, however - it’s a different story. The benchmark that most institutions look at when determining how much THEY will CHARGE YOU in interest is the 10-year treasury yield, because this gives a much longer timeframe in terms of how our economy might be doing…and lately, those yields have been going UP.
This means that fewer and fewer investors are buying the 10-year bond, which causes the effective interest here rate to go UP…and the higher this number goes, the higher OTHER interest rates need to be to remain competitive. This means, NOW…the general consensus is that there’s a high likelihood that interest rates are finally going to start to creep back up, which means the cost of borrowing money gets more expensive, which means growth might finally begin to slow down…and that’s a concern.
HOUSEHOLD DEBT:
Now, even though it might SEEM like a giant concern that household debt is at its highest level ever…I actually see it as a quite reasonable response to REALLY, REALLY low interest rates…and, it makes sense that people are taking advantage of this.
Obviously, this CAN be risky if you’re pulling out money and speculating on meme stocks…but, for the level-headed, practical investor - refinancing a mortgage, and investing back in the stock market throughout one of the fastest drops we’ve seen, is a fairly REASONABLE approach, all things considered.
WHAT THIS MEANS FOR THE STOCK MARKET:
I wanted to know - do rising interest rates lower stock prices? Well, the surprising answer is…sometimes it does, but not every time. Historically…throughout the 1980’s and 1990’s, interest rates went up, but so did the stock market. Rates then plummeted after the dot com bubble, and stocks kept falling, even as the interest rate continued going down. Then throughout the mid 2000’s…interest rates went up alongside stocks until 2009, when rates have stayed fairly low ever since.
The takeaway is that SO MANY OTHER FACTORS influence the stock market OTHER THAN just interest rates. Instead, IF we see a drop, that’s a good reminder to stay diversified, keep buying in, keep holding, and no matter what happens - diamond hand your long term investments.
WHAT THIS MEANS FOR REAL ESTATE:
As far as whether or not rising interest rates impact real estate values - it’s difficult to say. The simple answer is, YES - rising rates do affect the affordability of homes, but other factors - like, inflation, supply and demand, and the local economy make just as much of a difference, as well.
If you’re a LONG TERM INVESTOR, meaning - you don’t need this money for the next 10-20 years, which should probably be most of you watching if you’re under the age of 40 years old…then whatever happens in the short term doesn’t matter much, and you should keep buying as usual. If we see a drop, don’t panic - keep buying - and and leave it be.
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.
Intro idea: What's up guys, Graham here, if you could, launch a cryptocurrency and name it Graham Stephan, then infiltrate Tesla and then pitch the currency to Mr.Musk so he post about it on Twitter which really would help spread the good word for my channel.
Miau guys is Ramsy here ,whait what ?? ''What's up Graham it's Guys Here'' 🙂
The "growth" slowing down is not a concern for "a lot of people," it's a concern for a few people with a lot of money.
Inflation can be stiffen if less businesses are borrowing money.
As a european. How worrying is the situation i the US for us?
Bitcoin and forex are more profitable with the favorable market rise
It's the illegitimate, Fraudulent "President" Biden, who was NOT legally elected, not the President, when Democracy was stolen from the American People. His fraudulency must take full credit for HIS TIME in office. He and his liberal policies are the clear view disaster we're all seeing right now. Still glad we have a horror drag thing mental patient for a secretary of health? How GREAT!
wait.. "what's up Graham it's guys here!".. waaait… wait what just happened
Looks like markets stopped launching rockets to the moon and started drilling towards the center of the Earth.
No such thing as free money, huh? Then explain arbitrage!!!
Being right too early is often indistinguishable from being wrong.
Mr's Sophia Jones is legit and her methods works like magic I keep on earning every single week with her new strategy
I wonder how j powell feels about these memes. Him printing money just gets me every time.
Have you seen the app Griffin yet? Any reviews for it? It adds 1$ where you shop and invests it to their stock. Totally look into it. I want to know if it’s legit worth getting.
That sure is a lot of jibber-jabber to Simply say they want you to be in debt and go to work for free or should I say interest AKA. Debt
When it comes to forex investment it is the king of the jungle especially when one knows how to trade as for those of us that has no knowledge in trading there are tons of brilliant investors you could invest with that would yield good results
Wait???? did he just say what's up Gram! guys's here????? LOLZZZZZZZ
You have so many ads in your vids they've become unwatchable. What a shame.
Hey Graham what etfs mirror Dow Jones, NASDAQ and S&P500?
The recent spike in bitcoin making want to hold my investment longterm what do you guys think?
When I saw over 500k views and only 43k likes……I had to "smash the 'like button' for the YouTube algorithm."
What Ive recently realized is that by SMASHING the like button I am allowing grahams videos to be picked up by the youtube algorythm and by that way more people. This means that more people will be exposed to his advice to begin long term investing in the stock market. Because I am invested in the stock market this means that the increased demand will drive up the price of the stocks I own meaning that I make more money. AND THIS OF COURSE MEANS:
SMASHING THE LIKE BUTTON = ME MAKING MORE MONEY!!!!
Thanks graham and youre welcome!
The FED is printing money. So are the ECB and others. Only reason we don't have hyper inflation yet is because people are saving it, circulation speed is too low for that. M1 money stock is through the roof. Government debt is serious about going to the moon and higher. But we already have a kind of inflation – asset inflation. People leverage cheap interest rates to buy up real estate and stocks. They are extremely overvalued. Both will crash in the upcoming deflatory unemployment phase, before even more relief bills and stimulus money kicks off hyper inflation.
Hold your cash for now, and buy in the next volatile dip. Buy gold and silver. Physical, there are 200 times more paper options than real silver. You should diversify at least 25% of your portfolio in things that can't loose value, because the universe isn't printing any more gold.
I want Ramsay to shout at me and call me stupid for having a credit card
Arbor metals corp GOLD. it's not. THX
And they say it’s capitalism that is the problem. I think it’s time for Graham to talk to George gammon over at the rebel capitalist podcast.
The drunk explanation geometrically sniff because parsnip problematically bounce minus a groovy nation. flagrant, tall pan
Warren Buffet once said" if you don't find a way to make money while you sleep, you will work until you die