THIS Could Kill the Stock Market | Investors Have it All Wrong

Do higher interest rates mean a stock market crash? How do stocks perform when the Fed is raising interest rates? What should you do with your portfolio and how to invest? The answer will surprise you! Follow these and all the stocks in our 2022 Bow Tie Nation portfolio on Stockcard. Use promo code bowtienation for a special discount beyond the free trial! https://mystockmarketbasics.com/stockcarddiscount In this video, I’ll show you the returns on different investments while the Fed is increasing interest rates and why you should NOT be scared. I’ll show you which stocks to buy while rates are going up and then reveal the critical piece that investors are missing that could derail the stock market and how to invest. The first lesson here is just not to freak out like everyone is saying right now as the Fed starts to increase interest rates. The central bank raised rates for more than three years starting in 2015 and growth stocks still returned 12% a year…hardly the stock market crash some are predicting right now. We’ll dig deeper into that data but to understand this, you only need to understand why the Fed increases interest rates and when. The Fed or the nation’s central bank, is tasked with doing just two things. Keep unemployment low and make sure prices don’t rise too quickly . Now these are kind of competing phenomena right! If the economy is growing, people are getting wage raises and spending money then unemployment is going to be low. But if the economy grows too fast, inflation starts to heat up. So the Fed uses its power over interest rates to raise or lower rates, either slowing down or boosting the economy to keep these two parts of the economy in balance…low unemployment but slow inflation. So if you think about it, it doesn’t make sense to be scared of stocks when the Fed is raising interest rates. That’s because the Fed usually increases rates when the economy is strong. When unemployment is already low, like it is right now so it doesn’t have to worry about that, but when inflation is heating up. A growing economy, low unemployment and healthy consumer spending because of a good jobs picture…that is all a great environment for stocks and why the stock market is usually very strong while the Fed is hiking. What we don’t see in this data, and what nobody is talking about right now is what comes AFTER the Fed stops raising interest rates. That kind of forward-looking analysis that is going to protect you from when stocks do decide to crash. 🤑 Get The Weekly Bow-Tie - my FREE weekly email newsletter sharing market updates, trends and the most important news! Market Updates for the Smart Investor! https://mystockmarketbasics.com/dailybowtie My Investing Recommendations 📈 Check out the stock simulator and Get a FREE share of stock worth up to $1000 when you open a Webull investing account with a $100 deposit! 🤑 https://mystockmarketbasics.com/webull 📊 Download this Portfolio Tracker and Investing Spreadsheet! [Community Discount Code] https://mystockmarketbasics.com/spreadsheetdiscount Free Webinar – Discover how to create a personal investing plan and beat your goals in less than an hour! I’m revealing the Goals-Based Investing Strategy I developed working private wealth management in this free webinar. Reserve your spot now! https://mystockmarketbasics.com/free-investing-webinar My Books on Investing and Making Money 💰 📗 📈 Step-by-Step Dividend Investing http://amzn.to/2aLpFcs Step-by-Step Bond Investing http://amzn.to/2aLpA8p SUBSCRIBE to create the financial future you deserve with videos on beating debt, making more money and making your money work for you. https://mystockmarketbasics.com/LetsTalkMoney Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through debt payoff strategies, investing and ways to save more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps.