Falling interest rates will cause a huge asset rally

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Performed by Gary Stevenson
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21 Comments

  1. Who is buying these assets? Can't be the poor. They just want food, shelter, and transport. So, if the rich are buying assets, the seller is also rich. But here's the kicker, the seller has cash that needs to be converted into a valued added asset. Guess what the seller does? Yes, buy another asset.

    All you people who are praising this guru are somewhat dim…. There's a "YT MBA" saying, "Listen to Gary." Whereas Gary's understanding of economics could be on the same level as the cashier in Walmart.

  2. What is the primary objective of interest rates, Cashier Gary?

    To curb or slowdown inflation (prices of a representative basket of goods and services, the extended version may include rents/mortgage payments). Because rapid orice increases has more deterimental impact on the economy than your concern for asset prices. The rich are unfazed by rising prices of food, transportation… In an economic slump, the luxury goods market still thrives. Why? Because the rich are less impacted by inflation. However when that inflation starts to devalue the currency, the rich move their investments abroad. Thats why economics addresses the needs of the low to medium income earners. Also they are the largest voting block. Thats logical right, because the majority cant be rich, its a fixed size pie. For someone to get rich, some must become poor.

    So if you dont understand interest rates, monetary policy and inflation. Your whole argument is 💩.

  3. High interest rates transfer wealth from indebted middle class to bond-owning wealthy class, doesn't this inflate assets like stocks as the wealthy invest this windfall?

  4. This is an awful take. Firstly, the american CPI measures housing costs as i assume other countries do. Secondly, CPIs measure the average cost of the average consumption basket. You don't consume wealth so by definition CPIs dont measure wealth. The US Fed and Census however have plenty of measures of wealth and is considered. Wealth just isn't inflation.