While we were sleeping last night, something huge happened in the US economy…
We’re talking about the Fed raising interest rates!
Last night, the Fed decided to raise interest rates by 0.5%.
Check out all the news headlines about this:
If this is your first time hearing about the interest rate hike, let me explain more.
Put in a simple way, the Fed interest rate is the interest rate that the US government suggests for banks.
When the Fed interest rate goes up, the stock market generally goes down. When the Fed interest rate goes down, the stock market tends to go up!
But you might be thinking:
“Then why did the market go up last night?”
The answer is this: the analysts in the market thought the Fed would increase the interest rate by 0.75%, but they only decided to raise it by 0.5%.
This means the interest rate hike was LOWER than what the market expected.
Here’s what the Fed Chairman Jerome Powell said:
“Seventy-five basis points is not something the committee is actively considering…”
What does this mean for investors like you?
It means the US government is trying to control the rate of inflation, which might result in the market going up less fiercely than before.
As an investor, this means your portfolio might not grow as fast…
Even if you’re holding on to great companies!
Nevertheless, you'll be rewarded by your patience in the long run.
Join Our BOS Community
In the Buffett Online School, we believe in learning the right investing mindset and system, so we can start cultivating emotional detachment and grow our wealth safely and substantially in the long run.
By joining the Buffett Online School community, you and your friends will have access to a wealth of educational resources, expert insights, and a vibrant network of learners. This will help you and your loved ones further enhance your investment skills and emotional stability, thereby improving your portfolio returns.
Our next 2-day BOS MBA Value Investing Online Bootcamp is happening soon! We will teach you how to use Warren Buffett's proven investing method to maximize your portfolio in a safe way.
Even if you have attended before, you will still gain additional new insights and exclusive community support specifically for this upcoming bootcamp!
And the best part is, it is FREE!
Additionally, our BOS community offers exclusive rewards and recognition for each person you invite, making your journey with us even more rewarding. You will take away resources like:
- Gone Fishing With Buffett ebook to understand Buffett’s investing insights (worth $17)
- Financial Freedom Calculator to plan out your own retirement portfolio (worth $47)
- Warren Buffett’s Portfolio Watchlist to peek into his recent trades (worth $97)
- ETF online course to learn to generate consistent 10% every year (worth $297)
Remember, you have the choice to cultivate the right investing mindset and unlock your potential to build wealth through intelligent investing. Together, we can create a network of educated investors who make informed decisions and contribute to their financial well-being! Join the BOS Community Today!
In the meantime, feel free to check out some of our blog posts to continue your learning. You can also join our BOS Telegram channel for more investing insights.
Comments