Stock Market Long-Term News - The Fed, Wealth, Yields (Video)

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Includes: DDM, DIA, DOG, DXD, EEH, EPS, EQL, FEX, FWDD, HUSV, IVV, IWL, IWM, JHML, JKD, OTPIX, PPLC, PPSC, PSQ, QID-OLD, QLD, QQEW, QQQ, QQQE, QQXT, RSP, RWL, RWM, RYARX, RYRSX, SBUS, SCAP, SCHX, SDOW, SDS, SFLA, SH, SMLL, SPDN, SPLX, SPUU, SPXE, SPXL, SPXN, SPXS, SPXT, SPXU-OLD, SPXV, SPY, SQQQ, SRTY, SSO, SYE, TNA, TQQQ, TWM, TZA, UDOW, UDPIX, UPRO, URTY, USSD, USWD, UWM, VFINX, VOO, VTWO, VV
by: Sven Carlin

Summary

The FED just raised interest rates but I don't see it as a long term sustainable trend.

An analysis of the mean and median wealth indicates how an investors have to position themselves accordingly.

Higher interest rates don't really move the needle for long term bond yields, in similar fashion to past scenarios.

There is a lot of news related to the stock market, but the large majority of it is totally short term oriented. Of course, news agencies offer what the viewer requests and daily changes in gold or stock prices can keep the mind busy and ratings high. However, I wonder whether there is much value in the provided data. In this weekly video series I will try to give a long term perspective on what is going on in financial markets and the economy.

This week's news is related to the recent increase in interest rates, but not at whether it was expected. Rather, I discuss the sustainability of the FED's actions in relation to the important factors pushing this economy forward. A look at the impact on long term and short term yields is also very telling.

I conclude with a discussion of wealth creation, touching on the mean and median net wealth numbers and how they have significantly diverged as a direct result of the FED's actions. It will be very interesting how this situation will evolve in the future and we have to be smart about how we position ourselves. Enjoy the video.

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Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.