Understanding the Federal Reserve’s 2% Inflation Target Explained

2024-12-29

Government spending impacts economics & markets. With overbought markets & high speculation, there’s a higher risk ahead. Stay informed! 📈💡 #Economics #MarketInsights

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YouTube channel = @ TheRealInvestmentShow

2024-12-27

When the Obama Administration first suggested the Affordable Care Act following the Financial Crisis, we argued that the outcome would be substantially higher, not lower, healthcare costs. It is interesting today that economists and the media complain about surging healthcare costs with each inflation report but fail to identify the root cause of that escalation. …

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2024-12-23

Single tax rates may increase tax liability & impact retirement savings. Planning ahead is key! 💡 #FinancialPlanning #TaxTips #Retirement

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YouTube channel = @ TheRealInvestmentShow

2024-10-28

Are you making investment decisions based on psychology or asset selection? 🤔💸 Join the discussion on navigating the market challenges! #InvestingTips #Finance101

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YouTube channel = @ TheRealInvestmentShow

2024-10-25

Gold Fish are changing their name to Chilean Sea Bass, and Spam will henceforth be known as Filet Mignon; the world has gone awry, and Richard & Jonathan discuss the surprise results from Tesla, Polymarket odds for the 2024 Election, and goal scooping and setting expectations for 2025. Richard compares the Saudi’s newest, biggest building in the world to the Tiny Homes trend, and Gen-Z’s housing preferences (No car, no garage = no problem!) The Atlanta Fed’s Home Ownership Affordability Monitor is a good gauge; the death of Elizabeth Warren’s 50-30-20 Rule of Thumb. You can find affordable housing if you look, but you might not like where it is. Housing will eventually become more affordable. Comparisons of Sears’ Craftsman Homes to Tiny Home enclaves (as in Independence, Texas);

2024-08-24

Managing long term gains is key. Take profits along the way for a more manageable position. Looking ahead for better chances! 📈 #investingtips

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Watch the entire show here: https://cstu.io/47695e

2024-08-23

The latest retail sales report seems to have given Wall Street something to cheer about. Headlines touting resilience in consumer spending increased hopes of a “soft landing” boosting the stock market. However, as is often the case, the devil is in the details. We uncover a more troubling picture when we peel back the layers of this seemingly positive data. Seasonal adjustments, downward revisions, and rising delinquency rates on credit cards and auto loans suggest a more cautious view. The consumer—the backbone of the U.S. economy—may be in more trouble than the headline numbers indicate.

The Mirage of Seasonal Adjustments

The July retail sales report showed a sharp increase of 1.0% month-over-month, surpassing expectations. However, while that number supports the idea of a

2024-08-21

Profitable bond trading opportunities arise when your expectations about Fed policy differ from those of the market. Therefore, with the Fed seemingly embarking on a series of interest rate cuts, it behooves us to appreciate how many interest rate cuts the Fed Funds futures market expects and over what period. Equally important, Fed Funds futures help us assess the market’s economic growth and inflation expectations.

Currently, Fed Funds futures imply the Fed will start cutting rates in September and reduce them by 2.25% to 3.09% in early 2026. From that point, the market expects the Fed to slowly increase Fed Funds to 3.50%. The limited rate cuts and relatively high trough in Fed Funds tell us the market is not pricing in a recession but a normalization of GDP with inflation running