Stock Market Rallies as Fed Chair’s “F-cking Door” Goes Viral
Dear Traders,
I hope you have been following the exciting events in the market and our chatroom today and yesterday. Before I delve into the story I want to share, I’d like to mention that there is an important recap you should watch, including a special story about someone scamming under my name. Your feedback is valuable, so please leave a note after watching.
Now, back to the story about the door.
During an IMF event on November 9, 2023, the Chairman of the US central bank, one of the most influential figures globally, found himself in an interesting situation. Environmental activists entered the room to protest the Fed’s policies and their impact on environmental research and endeavors. Security rushed to protect Powell, but he was caught on a “hot mic” saying, “just close the f-cking door!”.
If you haven’t seen the video yet, you can watch it here.
This incident serves as a reminder that even the most powerful individuals in the world are human, just like us. They have moments of frustration and don’t have nerves of steel. It’s a humorous reminder of their humanity, and memes have already begun circulating. This could potentially become one of the greatest memes of all time for traders.
While the incident provided some amusement, the environmentalists do have a point. After a decade of near-zero interest rates, we are entering a new era of higher interest rates that may last for a long time. In this environment, risk-taking, innovation, and breakthroughs become less attractive as money becomes more expensive and credit tightens. Even businesses and innovations with promising futures may face challenges securing investment at a time when their contributions are needed the most. Some prominent companies in the clean technology sector, like PLUG, have recently issued “going concern” warnings to investors, signaling difficult times ahead for environmental clean technology.
I recently read an article about the real winners and losers in a higher-for-longer interest rate world. The real losers appear to be millennials, those born between 1980 and 1996 such as yours truly. Many still carry significant student loan debt while striving to enter the housing market. In contrast, Gen Z, born in 1996 and after, may also have student debt but are not yet at the stage of buying homes.
Most Gen X, born before 1980 and after 1964, have paid off or substantially reduced their student loans and are often locked in low-rate mortgages during the pandemic. Baby Boomers, born after World War II and up until 1964, are typically focused on paying off mortgages or have already done so. Many are now retiring, taking advantage of higher rates to bolster their investment income as they shift toward fixed-income investments in their Golden Years.
Gen X and Boomers are the real winners, they want rates to go higher in order to pad their savings accounts.
As rates rise, millennials face a significant and unprecedented transition to a new normal. It’s a challenging situation that no generation has experienced before.
Finally, we are in the last month of the Peak Capital bootcamp. I’ve noticed multiple traders striving to reach the $10,000 profit milestone, and the competition is intense. I’m excited to see if any traders can achieve this goal and receive a check from me for $10,000. I might even consider flying them to our Vancouver office to spend a few days with me!
If you’re interested in joining a comprehensive bootcamp with 1:1 mentorship, group sessions, live trading, webinars, and Tradebook sessions led by some of our top traders, check out our bootcamp starting in January 2024.
To your success,
Andrew
