Summary of Who Will Blink First? The Fed, The Bond Market, Or The Bears? | Lance Roberts & Adam Taggart

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00:00:00 - 01:00:00

The video discusses the potential consequences of the Fed not being able to purchase government debt, which could lead to higher interest rates and an illiquid Treasury market.

  • 00:00:00 In this week's market recap, Lance Roberts and Adam Taggart discuss the volatility in the stock and bond markets. Lance points out that this volatility is a common occurrence during bear markets, and that the market is currently in a "fine balancing act" between inflation and the FED's goal of keeping rates low. The pair also discusses the upcoming Fed meeting and the potential for a rate hike.
  • 00:05:00 Lance Roberts and Adam Taggart discuss the Fed's decision to buy bonds and the market's reaction, noting that historically after elections markets undergo sharp negative revisions. They also discuss the possibility that the market may be burning off oversold conditions.
  • 00:10:00 The market is likely to go down in December, and Lance Roberts recommends selling stocks near the end of the year to take profits. He also predicts that the market will reach a higher point in early January, due to the buying that will happen at the end of the year.
  • 00:15:00 The market is oversold and there is potential for a rally in the near future. Lance Roberts and Adam Taggart discuss the risks associated with investing in the market.
  • 00:20:00 Lance Roberts discusses the risks involved in different investments, including treasury bonds and mortgage-backed bonds. He suggests that investors consider what they want their return to be and what they think the market will do in the near future.
  • 00:25:00 Recent developments suggest that the central planners may be losing control of the situation, which may lead to more market instability.
  • 00:30:00 In this video, Lance Roberts and Adam Taggart discuss the Fed, bond market, and bears. Roberts points out that Janet Yellen, the former Fed chair, has warned about a lack of liquidity in the treasury markets and has now said that the Federal Reserve is getting nervous. This is likely a sign that the Fed will begin to slow its policy-making process in the near future. Taggart discusses the UK banking crisis, where Prime Minister Liz Truss was ousted after clashing with Bank of England officials over policy. Japan's government bond market has been trading above 25 basis points, signaling that the Bank of Japan is not succeeding in its attempts to keep interest rates low and the yen from collapsing. All of these events are indicative of a Fed that is losing control over the economy.
  • 00:35:00 The author discusses the theory that the Federal Reserve has created instability in the markets by intervening too much. He also points out that this instability can be linked to other issues such as increased levels of debt, wealth inequality, and corporatism versus capitalism. The author suggests that the Fed should stop providing life support to companies and allow them to go through a debt reversion, in order to solve these issues.
  • 00:40:00 The video discusses the potential consequences of the Fed not being able to purchase government debt, which could lead to higher interest rates and an illiquid Treasury market.
  • 00:45:00 Lance Roberts discusses how rates for mortgages and other loans are increasing, and how this could impact prices of homes. He also discusses how Airbnb's recent trend of charging cleaning fees could lead to a decrease in hotel bookings, and how this could lead to a further decrease in prices for homes.
  • 00:50:00 The video discusses how the market for housing is affected by different factors, with Lance Roberts and Adam Taggart arguing that some homes will have to sell in order for prices to decrease.
  • 00:55:00 The video discusses how inventory affects home prices, and how sellers can manipulate the market by setting their prices too high or too low. The example used is of a house that was listed at a high price, but was sold for less than the market value. This caused the prices of all other houses in the neighborhood to decrease.

01:00:00 - 01:45:00

In this video, Lance Roberts and Adam Taggart discuss the potential for a recession, and how it may affect different aspects of the economy. They recommend that people save money and be smart about their investments, in order to weather the storm.

  • 01:00:00 Lance Roberts discusses how the recession will worsen as unemployment increases and prices come down. conducted a survey and found that a majority of Americans are prepared for a recession, but are mentally worn out by it.
  • 01:05:00 Lance Roberts and Adam Taggart discuss the possible reasons for the current economic situation, including the lack of emergency savings and the layoffs of remote workers.
  • 01:10:00 This video discusses the widening gap between the stock market and other economic indicators, and how this may lead to a recession. It also discusses the increasing rates on credit cards, and how this may lead to more financial stress for consumers.
  • 01:15:00 The video discusses the reasons for layoffs, and how they can happen in a recession. It also discusses the trend of companies hiring and firing employees constantly, due to the economy.
  • 01:20:00 Lance Roberts and Adam Taggart discuss the trend of decreasing job security and increasing automation, and how this is affecting the economy. They note that while some jobs may be created, most are low-paying, unskilled positions. They also point out that the current political shift towards socialism is making the situation worse, as it reduces incentives for businesses to create higher-paying jobs.
  • 01:25:00 Lance Roberts, a financial commentator, was invited to speak to a high school's financial literacy group. One of the students in attendance was interested in bond investments, and Roberts discussed the different types of bonds and how they are affected by the bond market.
  • 01:30:00 In this short video, Lance Roberts discusses the importance of developing savings habits early in life, and how private wealth usually comes from private businesses rather than from stock market investments. He also advises teaching students how to invest intelligently, rather than simply gambling with their money.
  • 01:35:00 Lance Roberts and Adam Taggart discuss the importance of earning money and how to make sure that you are always valuable to your company, even in a recession.
  • 01:40:00 The video discusses the challenges that the stock market, bond market, and bears face in the near future. It discusses the importance of having a professional financial advisor, and recommends that people contact to get a free consultation.
  • 01:45:00 Lance Roberts and Adam Taggart discuss the potential for market volatility in the near future.

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