When the Fed Cuts Rates, These Will be the Winners and Losers

Подписаться 425 тыс.

Просмотров 76 тыс.

50% 1

Meet up with Ken and Danille at the Limitless Expo conference in Dallas this August, use "KEN10" to get 10% off your tickets: https//limitlessexpo.com
Ken and Danille McElroy explore the potential impacts of the Federal Reserve’s expected rate cuts in September, analyzing who stands to benefit and who might face challenges. With rising unemployment, inflation pressures, and the uncertain economic landscape, this discussion breaks down what you need to know to stay ahead.
Ken has a real estate strategies podcast! Follow your favorite platform each week.
Apple Podcasts: apple.co/3jDqftx
Spotify: spoti.fi/31GUDwW
Follow Ken on social media at: x.com/kenmcelroy
• • •
Be sure to click the bell to be notified as soon as the next informational video is posted!
Visit Ken's Bookstore: kenmcelroy.com...
•
ABOUT KEN:
Ken is the author of the bestselling books The ABC’s of Real Estate Investing, The Advanced Guide to Real Estate Investing, The ABC’s of Property Management, and has an upcoming book: "ABCs of Buying Rental Property: How You Can Achieve Financial Freedom in Five Years." Ken is a Rich Dad Advisor.
Ken offers a wealth of personal experiences, practical advice, success stories, and even some informative setbacks, all presented here to educate and inspire. Whether you’re a new or seasoned investor, the information and resources on this channel will set you on a path where you and your investments can thrive.
Ken's company: mccompanies.com/
•
DISCLAIMERS: Any information or advice available on this channel is intended for educational and general guidance only. Ken McElroy and KenMcElroy.com, LLC shall not be liable for any direct, incidental, consequential, indirect, or punitive damages arising out of access to or use of any of the content available on this channel. Consult a financial advisor or other wealth management professional before you make investments of any kind.
Although Ken McElroy and his affiliates take all reasonable care to ensure that the contents of this channel are accurate and up-to-date, all information contained on it is provided ‘as is.’
Ken McElroy makes no warranties or representations of any kind concerning the accuracy or suitability of the information contained on this channel.
Any links to other websites are provided only as a convenience and KenMcElroy.com, LLC encourages you to read the privacy statements of any third-party websites.
All comments will be reviewed by the KenMcElroy.com staff and may be deleted if deemed inappropriate. Comments which are off-topic, offensive or promotional will not be posted. The comments/posts are from members of the public and do not necessarily reflect the views of Ken McElroy and his affiliates.
2024 KenMcElroy.com, LLC. All Rights Reserved.
#kenmcelroy #realestate #realestateinvesting #FedRateCuts #FederalReserve #InterestRates #Inflation #Unemployment #EconomicImpact #WinnersAndLosers #FinanceNews #EconomicAnalysis #RateCutEffects #CorporateDebt #ConsumerDebt #Afterpay #CreditCards #RealEstate #HousingMarket #ConstructionLoans #Renters #HomeBuyers #CashSavers #EconomicStrategy #InflationRisks #RateCuts2023 #MonetaryPolicy #EconomicTrends #FinancialPlanning #PersonalFinance #Investing

Опубликовано:

10 сен 2024

Ссылка:

Скачать:

Готовим ссылку...

Добавить в:

Мой плейлист

Посмотреть позже

Комментарии : 134

@KenMcElroy 29 дней назад

If you find this video valuable, please consider sharing it with someone who could benefit from it. Your support helps our channel grow and motivates Ken to keep making videos like these. Thank you

@ChadRoberts-x6i 12 дней назад

The Fed's talk of interest rate cut leaves me pondering what stocks to buy now and when do I sell? I'm unsure how to properly allocate my money to achieve an optimal portfolio in this present economy, my goal is huge for retirement.

@maiadazz 12 дней назад

Navigating market volatility can be challenging, it might be beneficial consulting with an advisor to provide personalized insights based on your specific situation and financial position

@oliviaHill-w4e 12 дней назад

No doubt, getting proper financial advice is invaluable, my portfolio is well-matched for every season of the market and just yielded a much better % from early last year. I and my advisor are working on a 7 figure ballpark goal, though this could take another year.

@richardhudson1243 12 дней назад

I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?

@oliviaHill-w4e 12 дней назад

Annette Marie Holt has always been on the top of my list..She is regarded as a genius in her area and well knowledgeable about financial markets. I highly recommend you look her up if you want excellent collaboration.

@AdamGreene222 12 дней назад

Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.

@ClaudiaSchreiber-b1p 23 дня назад

I feel investors should be focusing on under-the-radar stocks, and considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises of plummeting stocks which were once revered and i don't know where to go here out of devastation

@dianarabbanii2 23 дня назад

Safest approach i feel to tackle it is to diversify investments. By spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown

@annaj.osorio 23 дня назад

A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850K

@DanielOrstein 23 дня назад

This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? I'm in dire need of proper portfolio allocation

@annaj.osorio 23 дня назад

Viviana Marisa Coelho is her name. She is regarded as a genius in her area and works for Empower Financial Services. By looking her up online, you can quickly verify her level of experience. She is well knowledgeable about financial markets.

@Robbertskypes 23 дня назад

She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.

@MgtowRubicon 29 дней назад

I replaced a water heater in 2018 for less than $1000, for labor and materials. I just replaced the same water heater in 2024 for $2700, for labor and materials.

@rising_crust 27 дней назад

AND the 2018 one should have lasted longer than 6 years. I just had a deck and staircase replaced for a second floor unit and it was $22,480, plus a week of hotel and meal expenses for the tenant. And now that unit needs a new heat pump for $6200. This fall I have to replace another deck and have concrete footers and a pad poured, so that’s $31k. Tenants have no clue how much this stuff costs (to do it right) and certainly can’t afford it themselves.

@josephedlin2172 22 дня назад

Landlord here. Honestly with over $1mio in real estate and about two thirds of that in debt I just break even each month. It would be more efficient to sell the assets, pay off the debt, and put the difference in the bank. The operational costs and finance costs have doubled and what was cash flow is no longer cash flow even with rent increases. I’m honestly one more whiney text from a tenant from evicting everyone and selling up. Last week I had a tenant whine about the noise of traffic outside… the windows are all double glazed… but they said they had opened the window because it was warm indoors and now they can hear traffic… wtf am I meant to do about that?! Whiney gen-x tenants that rot the bathroom floors by leaving a sodden wet bath mat on them or flood the bath and just leave it to air dry… they don’t get that there’s an expectation on them to change their own light bulbs and if they’re going to get me to call out an electrician it’s going to have a cost.

@rising_crust 21 день назад

@@josephedlin2172 same. I cash flow about $20k annually on about $1mm across 4 properties and I only raise rents when I have to spend a lot on maintenance and repairs, yet I get Boomers who retired with no savings and living on SS complaining even though they had very cheap rent while the property was wasting away, they bought newer cars than they needed and smoked. 🤷‍♂️ But save my username if you do ever sell. 😅

@vinograd_nik 15 дней назад

That would mean that inflation was around 17% every year for the last 6 years

@gregdatastanyan3026 12 дней назад

Wow, what state? $2700 is pretty high

@johnmerlino7011 29 дней назад

At 63, I just don't want to own anything anymore! I just sold my house and am getting 4.28% for 3 years in a US Treasury ensuring that much of my rent payments for an apartment will be paid. I believe the long end of the curve will not be dropping and may rise with inflation in future months with the increase of Stagflation. After three years I will make new investment decisions. I just don't think the 'Duration Risk Premium" will fall from here. There are so many Black Swans in the sky that could drive up inflation, slow growth, and put us into recession. As unemployment rises, supply will rise and housing should correct. I don't trust the stock markets any longer as it's highly manipulated, concentrated, with stock buybacks, hype, and passive ETF inflows. If the Mag 7 falls, so will the indexes and employment.

@abel4776 29 дней назад

Stay AWAY from bonds, or anything government.

@mjmmjm9486 28 дней назад

I stopped listening the minute he said inflation is at 2.5 %. Does somebody else shop for them?

@patriciagartland6793 28 дней назад

Many many things will never go down--they will hold their prices and we will have to get used to it

@zhenshan456 29 дней назад

the other day I saw someone live in Phoenix for 30+ years still waiting for a crash. In his opinion the 2008 is not deep down enough. I would say for those kind of people they will never be able to brave enough to start a loan and purchase a house.

@martinross6416 29 дней назад

Another example of rich people not getting it. Inflation is absolutely NOT 2%.

@lukaszstaniec 29 дней назад

I'm getting financially steamrolled, I used to pay 40$ at Walmart nit too long ago, now it's closing in on 120$ .... 2% inflation 😂😅😂😅😂😅

@ChadShadel 29 дней назад

It's really cool that you guys do this as a couple! As always very informative!

@dev4statingx90 29 дней назад

This economy is trash. Real estate is gonna crash after they lower. Lowering rates is not bullish

@stevenap4594 29 дней назад

It’s not gonna do anything anyways. This is what all of those people were warning about for years.

@legacyopp9318 29 дней назад

I have a rental for you 😊

@dev4statingx90 29 дней назад

@@legacyopp9318 keep it

@thewhiteknight02 29 дней назад

Everyone who thinks prices will drop bigly are the same people who couldn’t afford when prices were low and rates were 3%.

@davidmann2524 29 дней назад

The prices are going to tank dude...math is math

@aaa5diamond 29 дней назад

Prices have been dropping in many markets for a year now. If a seller was looking for top dollar on their home sale, they should've sold in early 2023.

@FeelingPeculiar 29 дней назад

@@davidmann2524The real estate industry will remain very strong. If prices come down, all of the corporations will buy them up.

@TheAquaman1979 29 дней назад

When interest rates fall, there will definitely be another rally. People would be very silly to think anything other.

@aaa5diamond 29 дней назад

@@TheAquaman1979 By the time interest rates fall to a normalized level, many are losing their jobs and their credit is shot. Homes may rally by 2030.

@azdbuk 29 дней назад

My mrtge is 2.9%. I could care less what happens in the economy. When I hit 62 Ill rent it out, and move to Uruguay and laugh at all this stress.

@lobo2645 27 дней назад

As long as you dont sell and make cash flow who cares about the interests 😂

@CaliSteve169 17 дней назад

You'll rent it out for dollars. What will these dollars be worth if they cut rates?

@organizer14 6 дней назад

Yes rent control resulted in less affordable supply of affordable and livable units. Rent control is counter productive.

@Richard-wz9zi 29 дней назад

Thought you just were smarter. Real inflation is not 2.5. I just paid $8 for 18 eggs and 3.80 for gas.

@jmorris023 29 дней назад

Inflation is compounding, prices won't really go down, they'll just increase at a lower clip going forward.

@brucebrucefoundation 29 дней назад

🤔 Gawd damn I’m going to start selling my eggs… 😅😂

@davidmann2524 29 дней назад

Lol I pay less in Florida for pasture raised eggs...I imagine your lying

@jmorris023 29 дней назад

@@brucebrucefoundation I know, right? I know where we can get 12 eggs for $2.99 (it's this magical place called Ralphs). We could do some serious egg arbitrage with these price points.

@xpicklepie 29 дней назад

You may be looking for "de-flation". You may be very disappointed.

@LizaPhilips 7 часов назад

The continuously changing economic conditions in our society have made it necessary for people to find additional sources of income, thus I am looking at the stock market to fuel my retirement goal of $3m, my only concern is the recent market crash.

@frankbarnes22 7 часов назад

for majority, the solution to their problem can be found in specialized knowledge, so you can as well seek guidance from a well experienced advisor

@Johnlarry12 7 часов назад

Agreed, despite my rookie knowledge of investing, I have a financial advisor who did the trick in a bit more than 6 months after a lump sum capital of $500k, and I've so far made a fortune. I'm now buying real estates, gold and silver as advised by my FA.

@phillogan1 7 часов назад

I could really use the expertise of this advsors

@Johnlarry12 7 часов назад

Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

@phillogan1 7 часов назад

Thank you for this Pointer. She seems very proficient and flexible. I booked session with her

@brianpowell2 29 дней назад

The US economy is already in recession. Any rate cut will not ignite inflation. The banks will tighten even more, all consumer and corporate credit lending. This is the beginning of a deflationary period for your assets. Stocks markets will decline, and stock values disappear in a blink of the eye. Businesses will begin layoffs in earnest which will soon be reflected in the unemployment rate and unemployment claims, to further solidify the recession. In fact, when the FED cut rates in Sept, it will signify that the Titanic is going under, and it will suck everything down. Retail and housing sales will truly decline as consumer hold off their purchases. The inverted yield curve will then turn positive, but remember, certain assets like stocks and Crypto’s acts as a hedge. Long & short-term trading is generally safer, allowing investors to weather market volatility. I have managed to grow a nest egg of around 100k to a decent 432k in the space of a few months... I'm especially grateful to Francine Duguay, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape.

@brianpowell2 29 дней назад

Francine duguay program is widely available online..

@emilymiller3f 29 дней назад

I appreciate the professionalism and dedication of the team behind Francine's trade signal service.

@MorganGodvin2 29 дней назад

Francine goes deeper than just looking at surface-level trends. she explores technical, fundamental, and sentiment analysis, offering a comprehensive perspective on the market..

@ETElvis-bx9qf 29 дней назад

The clarity and precision in Francine market predictions are astounding. I'm so grateful to have found her reviews here on RU-vid as well.

@AMERSA2 29 дней назад

The key to financial stability is having the right investment suggestions for a diverse portfolio. Many investment failures and losses happen when you invest without proper guidance.

@jimdandy8996 29 дней назад

If people are shopping at those expensive stores and are financing it in masses, I don't feel bad for them at all when they complain that they have no money. These aren't necessities. Who buys at these stores? Millennials and Zoomers.

@moviehipster 29 дней назад

Right on. Thanks happiest couple in the world!

@UrbanAssetProtection 29 дней назад

In 301 AD, Emperor Diocletian implemented rent control in Rome through his Edict on Maximum Prices to address inflation and protect tenants from soaring rents. Although it offered temporary relief, enforcement was difficult, resulting in market distortions and a housing shortage. This happened in Rome and will more than likely happen again, reflecting the ongoing challenge of balancing tenant protection with market dynamics.

@brett7989 11 дней назад

When rates are cut house prices will decrease so equity will decrease and debt will be to high. Those with to much leverage in property will be in trouble. Those with massive amounts of equity and cash will clean up. Like a lot of people done after the GFC . Those people had cash and maybe great borrowing power. Id love to see a list of people that had few properties before the GFC and cleaned up after, like George gammon. That said people that done that shouldn’t expect any difference now except you should be cashed up , NOT heavy in property and debt

@MgtowRubicon 29 дней назад

The Fed manipulation of interest rates (i.e., bond yields) doesn't matter. Government deficit-spending is the cause of inflation, because the Fed must monetize the government debt. While the government is deficit-spending, the inflation rate will continue to increase, which is the secret default on the debt, including Social Security and Medicare. "The most important thing to remember is that inflation is not an act of God, that inflation is not a catastrophe of the elements or *a disease that comes like the plague.* Inflation is a policy." -- Ludwig von Mises

@Seanpfree 21 день назад

Asset prices and real estate are forever out of reach to the lower and middle class. .25-1% cuts dont change that. As rates fall, prices increase.

@lubosimaboshe 29 дней назад

am waiting for 5 quarter rate cuts...great video.

@jaredk7041 27 дней назад

ken is spot on about fed wanting higher unemployment. he is so correct, impressive

@bombbbesttestt23 29 дней назад

I been waiting the last 18 months for this 😂😂😂😂

@leeroach3381 24 дня назад

Very helpful Thank you for sharing this

@davidstephens9594 29 дней назад

Ken, I heard on another real estate channel that intrest rates would be lowered at a faster rate than they were raised, but you are saying the complete opposite of that. Thanks

@aFreeman0409 29 дней назад

I am just going to wait until R/E prices COLLAPSE. They will.

@thewhiteknight02 29 дней назад

Should’ve bought in 2019/2020. Will never see 3% again.

@aFreeman0409 29 дней назад

@@thewhiteknight02 Oh I did. Made a cool 2 million on just 2 deals.

@matbob7249 29 дней назад

Yes, wait! The more the merrier! It will certainly, collapse, in the future. You’re definitely on a right track.

@ralphsaldivar3398 10 дней назад

The losers explanation ( cash , sidelines ) was not very well elaborated upon 🤔. How is anybody sitting on cash while earning 5% a losing proposition? The money is more liquid than ever at this point , ready to move positively in many directions , isn’t it ?

@JimCasler 29 дней назад

The losers are the savers and taxpayers.

@brycehuff 20 дней назад

Why would the Fed change direction without a catalyst?

@Slide61 29 дней назад

The FED is also feeling pressure on the national debt which is continuously rolling over.

@cajones9330 19 дней назад

kept rates low for to long created real estate mess across the board. flipper mania , big corp investors, foreign buyers. BAM pandemic and then work from home. Its great that houses are invested in , repaired made better and resold but there needs to be some kind of regulation. The generation of people trying to afford shelter is pushing up prices because companies have to compete and pay higher wages.

@angieharris8015 28 дней назад

Personally, I use Bilt (for rent). I wish I could use it for mortgage too (I am both a renter and an landlord). I tried it and they denied the payment LOL

@MrCLAASS 29 дней назад

Basically, in order to get lower rates, we need unemployment... is the Fed saying lower r😮ates, or are they lowering the rate of change?

@nickrobin7806 29 дней назад

I disagree with the winners being home buyers and construction. When you go into a recession I have yet to see construction, home buying, consumer spending etc. The “loser” in cash is making 5% paying little taxes on that. When a recession hits and asset value falls they can take advantage of that opportunity. More likely to see deflation than inflation. 11:57. Based on history they will cut rates fast. Just look at a chart of Fed funds.

@easymoney116 29 дней назад

How can you compare government bonds to be a good deal. Whe you have 3 % inflation ,taxed on the income and no depression. You might net 1%.

@Cedartreetechnologies 29 дней назад

No actual pivot has occurred. I'll believe it when I see it. And regardless, rate cuts are a sign of bad economic times ahead.

@robertdimilia1671 29 дней назад

They ain’t cutting rates. core pce is still too high. When inflation comes out in a few days you are gonna see a 0.2 jump month over month. And also once the new unemployment numbers become out you are going to see unemployment go down. When those things happen the fed will have no choice but to not cut.

@elsadado1051 24 дня назад

It doesn't matter what percentage the Fed cuts! The Fed will continue buying government debt, and the government will continue deficit spending. And, consumers will face increasing costs across the board.

@Michaelh76 18 дней назад

Did she just misspeak saying inflation hurts fixed rate debt? What did she mean with that?

@steve5289 29 дней назад

Rent control will work on a nation law level, It will certainly get large corporations out of the single family home rental market and ease homelessness. This law is a must if lawmakers don't have the brains to limit the mass purchase of homes by Hedge funds. Greed is one of the main causes of homelessness / housing cost.

@Cedartreetechnologies 29 дней назад

Socialist alert! Very unserious advice from someone qho apparently is so little traveled they think Cheyenne, WY and Hoboken, NJ desperately need the same real extate policy, all administered by the same federal government currently maintaining open borders and proxy wars.

@SkyOceanBleu 29 дней назад

let's assume for a minute that i can't afford a house, but due to rent control, nobody will rent to me because they'd lose money. where do i live?

@pentrubarbati 29 дней назад

socialism is not a solution

@steve5289 28 дней назад

@@pentrubarbati Socialism is in all US policy. Please try to understand what socialism is before you post. Any regulation is socialism.

@pentrubarbati 28 дней назад

@@steve5289 you have no clue what socialism is and what cancer can come from it as me lives in an ex comunist country trust me is not fun

@dannymcelroy 25 дней назад

Totally agree, it's just hype and propaganda, unlikely to have a meaningful impact

@arsewind 29 дней назад

1/4 point will not help anything. 3/4 may be will help some

@brodien4543 29 дней назад

Uour thumbnail misleading.....but you sure are right about hope being a bad strategy for investing

@TruthAboveEmotion 14 дней назад

Inflation rate/CPI and unemployment rates are all bogus. Making long-term decisions based on these bogus numbers is a bad idea.

@chrismiller9897 21 день назад

Isn’t the economy going to be cratering when they’re lowering rates? I would imagine they will not be lowering interest rates unless the economy is in big trouble and it needs them! As an example, they started lowering interest rates during the great recession in September of 2007 They start lowering interest rates in December of 2008 just to give you a little perspective there.

@stevenap4594 18 дней назад

You can drop rates all you want real estate is going to be crickets for a LONG time.

@10317 29 дней назад

I think Climate Change could be the catalyst for the next black swan event in our country. In OR,WA,CA it is the wild fires. Insurance companies refusing to insure homes in moderate or high fire areas. On the coast it is hurricanes. People will simply start walking away.

@hecklerkoch2446 23 дня назад

THE BOND MARKET WILL EXPLODE if the FED Cuts as predicted.

@philbui 29 дней назад

bond market to blow up after this last rally into 2025/26

@btpcpa93 29 дней назад

Unwatchable now with her leading the discussion. Have a lot of respect for you Ken and really enjoyed your videos and learning from you but got to unsubscribe now. I know it no big deal to you but wanted to share my comments. Good luck to you.

@jimdandy8996 29 дней назад

Ever watch Redacted?

@TinyLuvsBostons 29 дней назад

00:39 2 1/2 ?? 2 1/2 what? Try 30% inflation

@dustinmarquand5301 29 дней назад

Pretty sure they re referring to the supposed current rate of inflation not the past 3-4 years of cumulative inflation...

@bluefab5 29 дней назад

A reduction in inflation reduces the amount costs increase. Deflation would be cost decreases. I thought you would know that? Unless you are purposely parroting a political talking point...