Unmasking the Impact of Interest Rate Changes on Global Investments

08/21/23 • 33 min

Enlightenment - A Herold & Lantern Investments Podcast

August 21, 2023 Season 5, Episode 26
Will the recent rise in interest rates and an era of a risk-free rate of return of 5.5% upend the financial markets or simply be the game-changer we’ve been anticipating? Buckle up as we traverse the financial terrain brought about by these unprecedented rates, the impact on equity and bond markets and what the future may hold. We'll also dissect Chairman Powell's anticipated speech and shine a light on a stock that’s a heady concoction of growth and value potential.
With the People's Bank of China lowering the one-year prime rate to 3.45%, the tremors are already being felt across global markets. This episode brings you up-to-date with how this decision is causing ripples in China, India, and Europe's economies. We'll walk you through the performance of individual stocks such as Nvidia, Palo Alto Networks, and NAPCO Security Systems, and delve into the connotations of increasing yields on the stock market and Bitcoin's dwindling value. All this, while bringing you the latest financial tidbits from Bloomberg, The New York Times, and CNN.
But that's not all. We're pulling back the curtain on the recent surge in treasury yields and the thrilling investment prospects they reveal. From the role of the Fitch downgrade and increased supply in these developments, to the eagerly anticipated economic growth and inflation predictions driving these changes, we've got you covered. With Chairman Powell's Jackson Hall Symposium speech on the horizon, we'll also explore Visa and Mastercard's promising outlook as growth stocks. Trust us, you don't want to miss this episode packed with insightful nuggets for investors braving these turbulent markets.

** For informational and educational purposes only, not intended as investment advice. Views and opinions are subject to change without notice.
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Previous Episode

Steering Through the Stormy Seas of Investing: Emotions, Market News, and Sound Strategies

July 31, 2023 | Season 5, Episode 26
Dare to sail the unpredictable seas of investing with us? Brace yourself as we untangle the web of emotions, news cycles, and external factors that interplay with your investment decisions. We’ve delved into the history of financial headlines, looking at how investors who stuck to their strategy despite the stormy weather have seen their patience rewarded. We’ll also discuss why having someone to bounce ideas off is crucial in keeping your emotions in check and making sound investment decisions.
Dive deep with us as we dissect how market news influences investment performance. Using actual economic data, we paint a clear picture of disparities between the average equity investor's returns and those of the S&P 500 over the past 30 years. We are also on top of trending topics like US Steel's acquisition proposal, the ebb and flow of Russian rubles, US Treasuries, and stocks like Tesla, Nvidia, and Apple. We will guide you through the importance of aligning your actions with your long-term plan and the occasional need to rebalance your portfolio.
No stone is left unturned as we investigate August's market trends. We scrutinize the effects of Moody's bank credit downgrades and the Federal Reserve's interest rate hikes on your investments. We also propose tactics like allocating funds to underperforming sectors and walk you through the movements in the bond market. Excitingly, we assess the potential of Comcast stock in the backdrop of future tech trends. Lastly, we demystify the benefits of investing in Treasury Inflation Protected Securities (TIPS) and iBonds as potential defenses against inflation. Ready to cut through the noise and make sound investment decisions? Let's set sail!

Next Episode

Decoding Fed Policies and Market Trends: From Interest Rate Hikes to Tax Code Revamps

August 28, 2023 Season 5 | Episode 27
Ready to navigate the turbulent waters of the financial markets? Join us as we dissect Fed Chairman Powell's landmark speech at Jackson Hole and its profound implications on the landscape of finance. We shine a spotlight on the markets last week, the risks lurking in the leveraged loan market and high yield bonds, along with highlighting some intriguing individual stock ideas. The impact of Fed's policy on interest rates, equity markets, and the currency markets is also under our microscope. Plus, we unfold how the delay in rate hikes, due to the amount of funds disbursed for COVID relief, has led Americans to seize this golden opportunity of low rates for mortgages.
Fasten your seatbelts as we zoom into the recent revisions to the tax code that could seriously affect those earning more than $145,000. We're sharing how the $7,500 catch-up contribution to an IRA now needs to be funneled into a Roth account and why these new rules won't be implemented until 2026. The SALT cap, its implications, and the ingenious workarounds some states have established for business owners are also on our discussion radar. But here's the kicker: the IRS has legitimatized this workaround and we're here to help you leverage it.
Finally, we give you a ringside view of the market sentiment following a positive week, with leading indicators like the S&P futures, NASDAQ, and Dow all showing gains. From the effects of the stamp duty cut on stock trades in China to the significant visit by Commerce Secretary Gina Raimondo, we cover it all. We also bring you updates around Horizon Therapeutics, Hawaiian Electric, XPeng, 3M, Kimco, RPT Realty, Hersha Hospitality Trust, Boston Scientific, and Novaq. To top it all, we review the best-performing stocks in the last 25 years. So, come aboard and let's sail together through the tumultuous yet tantalizing world of finance!

Enlightenment - A Herold & Lantern Investments Podcast - Unmasking the Impact of Interest Rate Changes on Global Investments

Transcript

Alan Eppers00:00:00.662

And now introducing Mr Keith Lanton .

Keith Lanton00:00:05.001

Hi , good morning . Welcome to the beginning of the end of the summer of 2023 . Here we are , august 21st . We've got one more weekend to go in August before we have Labor Day weekend and financial markets certainly not giving us the quiet that we sometimes anticipate during the summer months .