BREAKING: The Fed Just Froze Rates — Here’s What Happens After EVERY Midterm Since 1950!

Thanks to SoFi for sponsoring the video! Click here to sign-up for SoFi Crypto: https://sofi.com/graham | Let's talk about the Federal Reserve Rate Pause and what this means for the stock market / economy going forward - Enjoy! Add me on Instagram: GPStephan

FOLLOW MY INVESTMENTS / STOCKS HERE: https://getblossom.onelink.me/SOfu/grahamstephan

START BUILDING WEALTH WITH MY FREE NEWSLETTER: https://grahamstephan.substack.com

INFLATION IS MOVING HIGHER AGAIN

Inflation climbed back to 3.7% in September, while producer prices rose even faster. Higher oil prices are adding pressure, and that is pushing Treasury yields higher at the exact moment investors were hoping borrowing costs would finally come down.

TREASURY YIELDS ARE SURGING

Treasury bonds help set borrowing costs throughout the economy, including mortgages, business loans, credit lines, and other debt. When long term yields rise, financing becomes more expensive and investors start comparing risky assets against the return they can earn from government bonds.

WHY HIGHER BOND YIELDS MATTER

If investors can earn more than 5% from Treasuries, stocks and real estate have to offer a compelling reason to take additional risk. Higher yields can pull money away from more expensive assets and put pressure on valuations across the market.

THE STOCK MARKET IS WEAKER THAN IT LOOKS

The S&P 500 has performed well this year, but the headline index hides a much weaker market underneath. More than 4 out of 10 S&P 500 stocks are down this year, while a relatively small group of giant technology companies has generated a huge portion of the overall gains.

THE MARKET IS EXTREMELY CONCENTRATED

Watch on YouTube · Video by Graham Stephan