Money Tree Investing

Why Volatility Exists In The Market… And How You Can Benefit


Listen Later

A lot of volatility exists in the stock market right now, but did you know you can actually benefit from it?

Today we talk about how market reactions are driven by expectations versus reality, with surprises like unexpected Fed actions causing significant volatility. 

Political uncertainty certainly has an impact on the market and you can't even rely on Wall Street predictions. That's why it's crucial to understand market sentiment and how everyone’s collective behavior influences market trends over trying to predict the market itself! 

Today we discuss... 

  • The recent stock market volatility and the aim to understand it without getting bogged down in specifics.
  • How market reactions often follow Fed announcements, but these are just correlations, not direct causes.
  • How volatility can also be triggered by political uncertainty, such as the potential outcomes of upcoming elections.
  • The Fed’s future rate moves and their unexpectedness contribute significantly to market shifts.
  • Wall Street predictions can be inaccurate, with current expectations showing a high chance of rate cuts in the future despite past errors.
  • People don't fully realize inflation's impact because it is largely contained.
  • Personal inflation rates, such as grocery bills or car prices, may be much higher than CPI figures suggest.
  • The old methods of addressing inflation, like investing in the S&P 500, might not be effective against current "silent inflation."
  • The currency market is massive, and the carry trade is typically suited for large institutions rather than individual investors.
  • Lumber prices have dropped significantly, correlating with the housing market and broader economic conditions.
  • Housing affordability has decreased, with higher income levels required to afford typical homes in many markets.

For more information, visit the show notes at https://moneytreepodcast.com/volatility-exists-635 

...more
View all episodesView all episodes
Download on the App Store

Money Tree InvestingBy Money Tree Investing Podcast

  • 4.6
  • 4.6
  • 4.6
  • 4.6
  • 4.6

4.6

646 ratings


More shows like Money Tree Investing

View all
Investing Insights by Morningstar

Investing Insights

495 Listeners

InvestTalk by Hosts Justin Klein & Luke Guerrero, CFA | Wealth Managers and Investment Advisors

InvestTalk

1,503 Listeners

Motley Fool Money by The Motley Fool

Motley Fool Money

3,178 Listeners

Masters in Business by Bloomberg

Masters in Business

2,153 Listeners

Money For the Rest of Us by J. David Stein

Money For the Rest of Us

1,357 Listeners

We Study Billionaires - The Investor’s Podcast Network by The Investor's Podcast Network

We Study Billionaires - The Investor’s Podcast Network

3,370 Listeners

Rule Breaker Investing by The Motley Fool

Rule Breaker Investing

937 Listeners

The Investing for Beginners Podcast - Your Path to Financial Freedom by By Andrew Sather and Dave Ahern | Stock Market Guide to Buying Stocks like

The Investing for Beginners Podcast - Your Path to Financial Freedom

1,411 Listeners

Bogleheads On Investing Podcast by bogleheads

Bogleheads On Investing Podcast

586 Listeners

The Long View by Morningstar

The Long View

882 Listeners

Sound Investing by Paul Merriman

Sound Investing

338 Listeners

The Intrinsic Value Podcast - The Investor’s Podcast Network by The Investor's Podcast Network

The Intrinsic Value Podcast - The Investor’s Podcast Network

560 Listeners

Barron's Streetwise by Barron's

Barron's Streetwise

1,542 Listeners

Barron's Live by Barron's Live

Barron's Live

200 Listeners

Investing Experts by Seeking Alpha

Investing Experts

58 Listeners