Inflation is going to drive the market not the Fed, says NYU's Aswath Damodaran

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  • Опубліковано 20 тра 2024
  • Aswath Damodaran, NYU professor of finance, joins 'Closing Bell' to discuss the stock pullback, inflation impact and tomorrow's CPI report.

КОМЕНТАРІ • 100

  • @chris-pj7rk
    @chris-pj7rk 27 днів тому +404

    Interesting how over 2% inflation has been a concern when central banks and the Fed begin to hike interest rates. I consider the rising interest rate to be a very serious issue since it will undoubtedly cause more investors to withdraw their money from the stock market. But then I'm still aware of certain investors that continue to earn over $365,000. Wish I could accomplish that.

    • @alexyoung3126
      @alexyoung3126 27 днів тому +3

      Very possible! Particularly in the current market. There are several opportunities to generate excellent returns, but such intricate transactions can only be carried out by seasoned market professionals.

    • @jameswood9772
      @jameswood9772 27 днів тому

      It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.

    • @johnlennon232
      @johnlennon232 27 днів тому +1

      nice! once you hit a big milestone, the next comes easier.. who is your advisor please, if you don't mind me asking?

    • @jameswood9772
      @jameswood9772 27 днів тому +5

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    • @johnlennon232
      @johnlennon232 27 днів тому +1

      I just looked her up on the internet and found her webpage with her credentials. I wrote her a outlining my financial objectives and planned a call with her.

  • @geraldt331
    @geraldt331 29 днів тому +450

    I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my portfolio for retirement. I'm seeking to invest $200K across markets but don't know where to start.

    • @Jadechurch-ql3do
      @Jadechurch-ql3do 29 днів тому

      the strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.

    • @yeslahykcim
      @yeslahykcim 29 днів тому

      Even with the right strategies and appropriate assets, investment returns can differ among investors. Recognizing the vital role of experience in investment success is crucial. Personally, I understood this significance and sought guidance from a market analyst, significantly growing my account to nearly a million. Strategically withdrawing profits just before the market correction, I'm now seizing buying opportunities once again.

    • @lucaswilliams9992
      @lucaswilliams9992 29 днів тому

      impressive gains! how can I get your advisor please, if you dont mind me asking? I could really use a help as of now

    • @yeslahykcim
      @yeslahykcim 29 днів тому

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    • @BerryRyan-gl3sm
      @BerryRyan-gl3sm 29 днів тому

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  • @MrWashraf
    @MrWashraf Місяць тому +2

    Earnings of the listed companies are coming good despite high cost of borrowing or high interest rates and pressure of inflation. Mostly when Fed does easing money supply or cutting rates financial markets go down.

  • @Fanimik
    @Fanimik Місяць тому +5

    Inflation is too high

  • @ericj9011
    @ericj9011 Місяць тому +6

    There's been a recession of recession worries?

  • @theunbearablebull
    @theunbearablebull Місяць тому +14

    SPY 530 after CPI.

  • @darrenhere5856
    @darrenhere5856 Місяць тому +10

    "greed overwhelming geo-political risks" 🎯

    • @thedude5040
      @thedude5040 Місяць тому +1

      Children spending money they don't have in congress

  • @ariso
    @ariso Місяць тому +7

    When he said Nvidia was overvalued but Tesla wasn't some of the shiny wore off of him.

    • @titusp9488
      @titusp9488 Місяць тому +9

      Valuation and market price action are not the same. Go take his class if you can get in and afford it

    • @storev8959
      @storev8959 Місяць тому

      Try to watch Aswaths video: AI Winners, Losers and Wannabes: Valuing AI's Boost to NVIDIA's Value!
      It is not just stuff he is pulling out of his ass.
      It does take more than 5 minutes and includes spreadsheets, so might not be something for u.

    • @yuriyroman7132
      @yuriyroman7132 Місяць тому

      ​@@titusp9488 Damodaran made literally all of his lecture videos available as neatly organized playlists on his youtube account. No need to "get in" his class. His classes are just one youtube search and a few clicks away from anyone with internet connection.

    • @navsofour2892
      @navsofour2892 Місяць тому

      @@titusp9488 If he really knew about predictions he would be ultra rich by investing and not just half rich by giving classes.

  • @alexi2460
    @alexi2460 Місяць тому +1

    Yes, things are still expensive. Add the petro price and its still a tighten your belt scenario.Retirees are careful, you g people can move out of patents home. Housing is a real rip off for rentals

  • @mack7276
    @mack7276 Місяць тому +1

    They can't lower rates due to inflation remains high so credit will continue to be expensive. The Fed stopped QE2 years ago and cities are trying to keep their economies afloat by spending. I see why people are moving to BTC, metals, and other currencies. I wonder what happens when BTC distribution is halved?

  • @KT-zx9jr
    @KT-zx9jr Місяць тому

    The Fed Funds rate and other policy rates SET commercial rates and the bond market follows that.....That's how it is....

  • @kconnection79
    @kconnection79 Місяць тому +4

    BTFD after CPI

    • @user-gl7xm3kf3y
      @user-gl7xm3kf3y Місяць тому

      I'm ready !

    • @jonathantaylor6926
      @jonathantaylor6926 Місяць тому

      You really think the FED is going to cut with markets at or near their ATH's? Since when has that ever happened?

  • @JohnReynolds-ni5lv
    @JohnReynolds-ni5lv Місяць тому +9

    Gold signaling big trouble. $3.2T added to debt in past year. Oil going up, so is inflation. Fed has no good outcomes. We have a mess on our hands as interest debt service more than defense.

    • @cyclone917
      @cyclone917 Місяць тому

      This is the only right answer. NOBODY on CNBC or these talking heads acknowledging the insane deficit spending that has no end in sight!

    • @brendansmith7842
      @brendansmith7842 Місяць тому

      And so does every country.
      I think global currency devaluation of fifty percent over the next decade is likely. I have no idea how to passively and safely avoid it.

    • @__J____ff
      @__J____ff Місяць тому

      you don't know if the inflation is going up. CPI readings are stable

    • @JohnReynolds-ni5lv
      @JohnReynolds-ni5lv Місяць тому

      CPI is a lie. Gov using substitution and hedonics to lie. Open your eyes. You really believe the CPI lie?

    • @JohnReynolds-ni5lv
      @JohnReynolds-ni5lv Місяць тому

      CPI is a lie. Hedonics, substitution grossly distort to the downside. Wake up.

  • @dietmarstahl5407
    @dietmarstahl5407 Місяць тому

    even if rhy dont cut it sidnt distub the market. The market evem went to an all time high!!!

  • @rebelpan9269
    @rebelpan9269 Місяць тому

    Urnings

  • @pranavmalhotra1090
    @pranavmalhotra1090 Місяць тому

    Personally feel the markets over-reacted to possibility of rate cuts. While core inflation has been falling, supply-push inflation has been more dominant overall. Cutting rates wouldn't help much in that regard anyway. If markets really want bullish momentum to persist, perhaps the biggest incentive in my honest opinion would be a big geopolitical relief! Russia Ukraine, or Red Sea crisis, or Israel-Hamas (now Iran, Syria too), have all choked supply chains! Another truth the markets better realise soon is that this high interest rate environment is not going anywhere any time soon!

  • @user-ol7tl1vf5m
    @user-ol7tl1vf5m Місяць тому

    Inflation is unauthorized tax, which by definition is simply theft. For those that don’t understand inflation because your government officials don’t want you too.
    Inflation is a term used to describe the general increase in prices of goods and services over time. When governments say they are working to lower inflation to 2%, they are referring to their efforts to stabilize the rate at which prices are rising. However, it's important to understand that lowering inflation to 2% does not mean prices will fall; rather, it means that prices will continue to rise, but at a slower and more predictable rate.
    Inflation occurs when there is an imbalance between the supply of money in circulation and the demand for goods and services. When there is too much money chasing too few goods, prices tend to rise as consumers compete for limited resources. Governments use various monetary and fiscal policies to manage inflation and keep it within a target range, typically around 2% to 3% annually.
    Lowering inflation to 2% is aimed at promoting stability in the economy and preventing excessive price increases that can erode the purchasing power of consumers' savings and income. However, it's essential to recognize that even at a 2% inflation rate, prices will still rise over time, albeit at a slower pace.
    Therefore, when governments say they are working to lower inflation to 2%, it means they are striving to achieve a more moderate and sustainable rate of price increases. It does not imply that prices will fall, but rather that the pace of price growth will be more controlled, allowing consumers and businesses to plan and budget more effectively.

  • @rickhayes-oh2zm
    @rickhayes-oh2zm Місяць тому +1

    volcker

  • @__J____ff
    @__J____ff Місяць тому +3

    what ?? The video ended by him saying "I wouldn't be surprised if markets went down after feds cutting rates, rather than going up". 1) What

    • @Qwairy
      @Qwairy Місяць тому

      At least one guy on tv isnt a regard like the rest

  • @casstay4499
    @casstay4499 Місяць тому

    I now understand why my Grandfather used to say,”We are boycotting them!”

    • @pranavmalhotra1090
      @pranavmalhotra1090 Місяць тому

      what is that supposed to mean?

    • @casstay4499
      @casstay4499 Місяць тому

      @@pranavmalhotra1090 It means when a good has out priced itself the consumer walks. We must be more conscious about doing it or prices will never come down.

  • @abhinavgupta750
    @abhinavgupta750 Місяць тому

    he is right. markets will start crashing when the fed cut rates. it has happened in the past and it will happen again

  • @elizegostlet
    @elizegostlet Місяць тому

    I remember when I just got into crypto back in 2020 but later in 2021 I ended up selling it because I was dumb and I didn't understand it. I studied and learned and now I know how it works. Got back into crypto early in 2023 with 10k and I’m up with 105k in a short period of time .This comment serves as motivation for all those who have invested and continue to invest in cryptocurrencies with so many losses, do not give up, cryptocurrencies can change your life. Do your best to connect with the right people and you will surely see changes.

    • @Mariska-bz6ns
      @Mariska-bz6ns Місяць тому

      As a beginner what do I need to do? How can I invest, on which platform? If you know any please share.

    • @elizegostlet
      @elizegostlet Місяць тому

      As a beginner investor, it’s essential for you to have a coach or mentor to keep you accountable. Myself, I’m guided by Elissa Dawn Sharon... A widely known cryptocurrency /financial consultant

    • @Mariska-bz6ns
      @Mariska-bz6ns Місяць тому

      Really? I have seen her name before on the internet. is she really reliable?

    • @elizegostlet
      @elizegostlet Місяць тому

      check her out on google Elissa Dawn Sharon

  • @user-yq7rr9lh9c
    @user-yq7rr9lh9c Місяць тому

    3 year bull market is what is going to drive market, like always did in history. Everything else is noise.

  • @slavikpetrakov7822
    @slavikpetrakov7822 Місяць тому +5

    Has this guy ever been accurate? Srs

    • @stevechance150
      @stevechance150 Місяць тому +2

      He predicted 22 downturns in the market and he was exactly right on three of those.

    • @supadave422
      @supadave422 Місяць тому

      @@stevechance150 🤣

  • @Lex41127
    @Lex41127 Місяць тому

    Has this guy ever been correct? Nice call on BTC no intrinsic value when it was 3k

    • @Ro22666
      @Ro22666 Місяць тому

      Technically it doesn’t same as gold it’s a commodity so price is purely based on supply and demand

    • @lesleyjohnson8488
      @lesleyjohnson8488 Місяць тому

      He’s the Dean of Valuation, not the King of Speculation.

    • @Lex41127
      @Lex41127 Місяць тому

      @@lesleyjohnson8488 just an overpaid opinion

  • @faisalhijazi9782
    @faisalhijazi9782 Місяць тому +9

    This guy has been bearish for ever lol

    • @titusp9488
      @titusp9488 Місяць тому +8

      You laugh because you have no idea who he is and what he does

    • @faisalhijazi9782
      @faisalhijazi9782 Місяць тому

      @titusp9488 we all laugh when we make money. Hope you're laughing with us dear

    • @jeanlucbergman479
      @jeanlucbergman479 Місяць тому +1

      @@titusp9488 I'd rather be right than listen to a guy making arbitrary models with incredibly bearish assumptions.

    • @ravinarayan5273
      @ravinarayan5273 Місяць тому

      He gave his opinion, no need for you to action his opinions

    • @titusp9488
      @titusp9488 Місяць тому

      @@jeanlucbergman479 Problem is that you are not right ... because you simply dont have a clue what he is saying.

  • @free-qe6wx
    @free-qe6wx Місяць тому

    Yeah, expect the constant begging by Wall Street for the Fed to lower the funds rate. Down on hands and knees begging.

  • @tombrown8443
    @tombrown8443 Місяць тому +1

    naw really? tell me something we dont know. u can ask elementary kid and will say same thing. It "could" be not good for stocks if numbers are high. blah blah blah. Bunch of fools 😂

  • @Michael-kx7im
    @Michael-kx7im Місяць тому

    Where in stagflation territory and no one cares Americans are tired , can't afford nothing
    4 years and working man is destroyed

  • @rebelpan9269
    @rebelpan9269 Місяць тому

    Do I use bleach

  • @ReRiderChi
    @ReRiderChi Місяць тому

    Trump 2024. Save us.

  • @cypherapex45
    @cypherapex45 Місяць тому

    THIS GUY LOST ALL THE BULL RUN SINCE LATE 2022, HE IS PRAYING TO BUY THE DIP ;)

    • @ravinarayan5273
      @ravinarayan5273 Місяць тому

      Maybe you are the only person who knows about it

  • @michaelshih8163
    @michaelshih8163 Місяць тому

    This guy has a awful record of forecasts. He is wrong 90% of the time, and has no opinion the other 10% of the time.

  • @Myers70
    @Myers70 Місяць тому +1

    Welcome to BIDENFLATION
    TRUMP 2024....TRUMP

    • @nikitamcconnell8027
      @nikitamcconnell8027 Місяць тому

      Man, I’m not Biden fan by any means but inflation is the result of pandemic economical measures and they were implemented by trump administration

  • @roddywoods8130
    @roddywoods8130 Місяць тому +415

    Interesting how over 2% inflation has been a concern when central banks and the Fed begin to hike interest rates. I consider the rising interest rate to be a very serious issue since it will undoubtedly cause more investors to withdraw their money from the stock market. But then I'm still aware of certain investors that continue to earn over $365,000. Wish I could accomplish that.

    • @selenajack2036
      @selenajack2036 Місяць тому +2

      Very possible! Particularly in the current market. There are several opportunities to generate excellent returns, but such intricate transactions can only be carried out by seasoned market professionals.

    • @hushbash2989
      @hushbash2989 Місяць тому +2

      AGREED! Over 3 years now, I've made over 1.7 million by simply following a coach's advice. I was on the sidelines for a while watching, trying to determine the best time to get in, before I came across a coach, recommended by my wife. I was reluctant at first but I went ahead and contacted the coach. Best decision yet

    • @kaylawood9053
      @kaylawood9053 Місяць тому +2

      This sounds interesting. My portfolio is in the red. Can you recommend your analyst, please?

    • @hushbash2989
      @hushbash2989 Місяць тому +2

      Credits goes to Marisol Cordova, one of the finest portfolio managers in the field. She's widely recognized; you should take a look at her work.

    • @JulianBarnes-dd2iq
      @JulianBarnes-dd2iq Місяць тому +1

      Thanks for the advice. The search for your coach was simple. I investigated her well before using her services.