Interest Rate Futures have just begun to turn negative, implying the chance of another market drop happening throughout 2022 – here are my thoughts, what this means, and the chances of this happening – Enjoy! Add me on Instagram: GPStephan
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Welcome To: The Federal Fund Rate Futures.
This is the future price that represents the interest rates that banks pay when they lend money to each other, and this price will fluctuate over time, and then “Settle” on the last day of each month, essentially locking in that contract price for those specific dates.
But beginning in September of 2022, some contracts have begun to price in a NEGATIVE FEDERAL FUNDS RATE…meaning, they’re betting on a scenario where contracts are trading for OVER $100….at which point, you’re basically just saying: I’m willing to lose money…just for the guarantee that I’ll have a safe place to park my cash….
Since the beginning of the year, The Federal Reserve has been facing an uphill battle of inflation – while supply chain issues, low interest rates, and stimulus packages have caused the price of everyday items to rise at their fastest level in 30 years.
For some people, that’s great – it means that inflation causes certain assets, like stocks, commodities, and real estate, to rise in value…so, if inflation goes up 3% in a year, so does your investment. Other people say moderate inflation is necessary to keep our economy going, because – if we KNOW our money is going to lose a little value every year – it encourages us to either spend or invest it back into our economy, which keeps us growing.
The PROBLEM, however, is when inflation begins to eat away at the purchasing power of your money, FASTER than you’re able to make it…and, right now…WAGES simply can’t rise fast enough….leading us the new revelation: INFLATION MIGHT NOT BE TRANSITIONARY.
In terms of future rates, one asset manager believes that we could very likely see low – or negative interest rates…forever, based on HISTORY. His research dives into what known as “Secular Stagnation,” which has identified a downward trend in interest rates dating back over 700 years…predicting that “real rates could soon enter permanently negative territory.”
Either way, we could have a situation where – BOTH are right: We could see short term overnight federal funds rates getting pushed negative if the economic outlook starts getting worse….while, long term, interest rates expect to rise to help offset inflation.
BUT…that doesn’t mean that rates will actually end up going negative, and only time will tell how this pans out. Most likely, this is simply due to a fear of the new illness potentially wrecking havoc on the economy…and, the markets are looking for any excuse to spark a sell off.
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Negative interest rates would be a double edged sword! Love the table story! Charity girl needs a smiley!
🙂
Thanks for watching send a direct msg right away What’sApp✚𝟷𝟺𝟶𝟺𝟿𝟶𝟶𝟸𝟻𝟾𝟶✅
Market will continue to crash please keep selling so that I can go for shopping 🛍
Smiley face gang.
Here, let me translate.
Transitionary = Transitory
Exasturbating = Exacerbating
Wrecking Havoc = Wreaking Havoc
Brandon brandon brandon🤦♂️
Thanks for watching send a direct msg right away What’sApp✚𝟷𝟺𝟶𝟺𝟿𝟶𝟶𝟸𝟻𝟾𝟶✅📥
No. I’m from Denmark and they charge u for having money in the bank when you have more than 200.000 kroner or around 30.000 USD.
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I thought negative inflation makes money worth more.
Gold is the solution
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They should just buy Bitcoin where they can’t just print more money
Bonds are lower than inflation and they should just buy some Bitcoin to hedge there bets
The government has printed to much money and it’s a downward spiral.bitcoin is the answer
Does Graham breath?
BUY BITCOIN AND ETH
Negative interests is only for the cronies, not us plebs.
🙂
DO NOT put your money in Canada… were going through some things atm. It’s a terrible place to invest.
I’M ABOUT TO GO INSANE.
These dips are all SO beautiful.
Buueennoo 🤔🤕
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No one:
Literally No one:
Graham: What’s up Graham it’s Guys here
the bank I’ve used since i was 16 started charging a monthly fee just to have a checking account, I left them immediately
got my house in 2016 for 135k and locked in rate of 2.4%, now the zillow estimate is 205k
Wait.. did you just say, “it’s a safe bet the government is going to be paying back it’s debt” bahahahahahaha
“What’s up Graham? It’s guys here!” XD
Retired with a 7 figure portfolio and Receiving about $43k in dividends. I have been in the Stock market about 20 years. Am I worried? Am I selling? Absolutely not. I have purchased growth stocks too a little at a time over the past few weeks. I am going to sit back and observe how this all plays out, adding more at a time. my investment strategy with my FA actually calms me down. Eye on the prize, stay the course!
total noob here, your FA if you don’t mind can you link me ?
that’s quite impressive, you’ve surely made a good bit of money
For more text above 📩
FYI most Danish banks now have negative interest rates on everything above 100K DKK.
In every thumbnail Graham look as if he is about to start crying.
All that money they don’t know where to put is the money they took from the people
The youtubers that try to copy Justin Bieber’s hair from 10 years ago is hilarious
me excited to get a smiley face from Graham
🙂
Text for more 🔝☝️
Hey, I need some advice. Public uses plaid to link your bank account. However, I use chase bank which refuses to work with plaid due to API reasoning. Any advice is greatly appreciated! Which banks work with linking to public? What can I do?
Text Above number for more information📩
How to travel during a pandemic. Cheap luxury stress free travel. Yes I posted something it’s been a while.
In Switzerland negative interested rates have been there even before covid.
The real question everyone is wondering: Graham, where’d you get that jacket?
How did you know? Market is crazy today. It’s a bloodbath out here 😭
BTC about to go BRRRR !
Whats up Graham, it’s guys here. Haha, funny. That’s funny.
I don’t think this deflationary thing will happen tbh
‘Dislike button needed’
So another words our government is completely screwing us. Good to know.
We have had negative interest rates in Denmark for some time now :-/
Love your videos
It’s already happening.. In Switzerland the big banks gonna charge -0.75% interest rates starting january 1th. ( if income last 18 months exceeds 250k )
SMILE
Shiba coin is the future it rising day by day with time Shiba Inu coin will rule the world .who is on my side ?
His what’s app info 👆👆
@Gregory Obrien Thanks, for his info I’ll get to him right away
Trading shiba now will be very wise but trading without someone like Mr Roger Washington is never a good idea
I lost £1200 carelessly trading on a platform then I was referred to mr Roger’s Washington he recovered the loss and made an extra profit of £4600
I have never seen any of his clients complain of lost….I think he is just too perfect
How negative interest rates will affect high growth stocks like Tesla, Zoom or CRWD?
I was looking to good a loan to buy a house, do you think it’s still a good idea? should i wait?
so is a negative interest rate actually harming the wealthy? The poor carry very little money, but the rich are much heavier in cash.
What’s up Graham it’s guys here! 😂
Ronaldchris👈👈👈👈Te le g rm
Reach out to him right now 👆👆👆
Ronald taught me how to trade and recommended some good exchange with lesser fees. so yes if you are in for gains not just holding.. i’d highly recommend Ronald chris strategy. Life changing.
I’m from Europe, its normal 😂
Buy PUTS!!!!!!!! Lol
Is that a gt40 in his office?😂
Always bringing the value <3
Hey Gram, can you send me a smile face 🙂 PLEASE!!! 🤗
Graham, you used the word “transitionary” rather than the quoted “transitory”.
Been here since 18’. Do you like visa?
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If interest rates are a reflection on the value of the dollar, does a negative interest rate mean the dollar is worthless? Like garbage you have to pay to have someone take it to the landfill.
Graham as always very informative -keep up the good work. 👍
Thankss~~~
I hit the like button, where’s my smiley face? 😀
It’s called negative savings.
United States: Nooo, not negative interest 😡
Switzerland:…first time?
ha!
One ☝️ thing is the solution for all: BTC
In conclusion, inflation is coming. Right ?
Wow…so no one’s gonna address the fact that he said “What’s up Graham, it’s guys here”?? 😂😂
*said as a promise made to a previous commenter, respect*
Cause yall voted for biden
negitive interest has never happened, its easyer to bleed money from the 90% of the population. it much easyer to layoff another 40 million people.
I don’t believe the government I still haven’t got my taxes they say don’t call and if you call there is literally no one to answer the phone
<<<<>>>>
Neg interest rates inflationary
Free Tesla stock
Thanks~~~
So is this a good time to open my coffee shop?
Thanks~~~
Make sure you commit absolute tax fraud to that like button
Graham does it mean that convincing my husband to put the cash he keeps in the house in a high interest salving account recommended by you is not a good idea?
Is “transitory” the word you’re looking for?
Let’s go Brandon 🤮
Great video as always!
9:52 Exasterbated- To have exacerbated the negative effects of masterbation
Always direct register your shares so you can own them under your name instead of your brokerage owning them under ‘street name’
I woke this morning and it as,bitcoin gone below 40.000
The word is “trans i tory” not “trans itionary”.
does anybody notice his face is superimposed on an actor’s body?
Hey Graham, loved this video as I do with all of your content. I was hoping I could get a brief explanation as to what your preference would be between VT and VXUS for mixing in an ETF that hold international stocks.
🙂
Why do you say transitionary instead of transitory?
Give me a smily face and I’ll upvote. 🙂
I think cryptocurrency will really boom in 2022 because of this
Genuinely curious and serious question: but how do you suppose using Decentralized Finance would compare in this kind of environment? Yes it’s brand new and quite young but it’s still a very real factor that’s a bit of a wild card from a historic perspective
Exactly the opposite happened it just crashed
love you rascal
Negative interest rates already exist in Europe.
You called it
Bitcoin Flash crash taking place as we speak – wild times. Check the vids on our channel for Bitcoin Technical Analysis, where we called the weakness last week, and give an update on what’s happening right now. Cheers!
So should i buy gold with the money i saved 😅 ?
Gold, stocks, bonds, very safe. Never buying a negotiate rate though I’ll find something to replace bonds with if necessary