Are you feeling in any respect overwhelmed by the tempo and diploma of change we’re experiencing on the planet, the financial system, the markets, and life normally?
A sequence of head-spinning turns in occasions starting from rising inflation and rates of interest, Russia’s relentless and brutal assault on Ukraine, and a shock leak of a draft of a momentous Supreme Court docket opinion are completely encapsulated by the dramatic market motion of the final two days. After the Federal Reserve raised short-term rates of interest by half a proportion level (50 foundation factors) on Wednesday the Dow skilled its largest achieve since 2000, up greater than 900 factors, practically 3% to 34,061.06. Buyers have been evidently reassured by Fed Chairman Jerome Powell’s feedback that the central financial institution was not “actively contemplating” elevating charges by a sharper three-quarters of a p.c (75 foundation factors). That reassurance turned to doubt on Thursday when the Dow made a U-turn, falling 1,063 factors, a 3.1% drop, its largest decline this yr.
As we’ve got lined in a number of current WEALTHTRACK episodes there seems to be a brand new world order rising on a number of fronts which calls for brand new funding approaches. However what’s going to the brand new order seem like? How lasting are the adjustments, and what are one of the best funding responses?
This week’s visitor has the breadth, data, and expertise to deal with all these questions and extra. She is a long-time funding star who has by no means misplaced her affect or cool. She is Abby
Joseph Cohen, now a professor at Columbia Enterprise College, teaches the favored and oversubscribed “Way forward for the World Financial system” course which she has been doing as an adjunct professor since 2014.
I’m delighted she is with us to debate the contours of the brand new world order and their impression on the financial system and markets.
00:00 Hi there
00:50 Intro
02:45 Interview with Abby Joseph Cohen
20:00 One funding
24:44 Motion Level
WEALTHTRACK #1845 broadcast on Could 06, 2022
Bookshelf:
The Black Swan: Second Version: The Impression of the Extremely Unbelievable
#thefed #interestrates #financial system #investing #columbiabusiness #comlumbiauniversity #abbyjosephcohen
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Two sane, intelligent people having an insightful conversation. So respectful, refreshing. Suggests how the world would be a better place if women ruled it. 🙂👭👑🌎❤️🙏👍😊
Abby never impressed me.
With all respect, Abby was not worthwhile for my Investor stock guidance.
A reasoned approach. Thank you.
My impression we are in a 1970s lite scenario if all goes well.
In the face of worldwide food shortages – Worn out, dispirited, cold and hungry and low on gas (which I paid for at $4.39 per gallon mind you!!) after visiting every grocery store within a 25 mile radius of my home, only to find mostly empty shelves and other hungry people wandering aimlessly through the aisles. in search of just something to take home to their pantries to feed their families and their family dogs, the check-out cashiers standing idly at the end of their check-out stands, some of them with their eyes closed, probably wishing they were somewhere else, I abandoned my search. Hand trembling on the steering wheel, watching the last shopping center I visited fading in the rearview mirror, somehow miraculously an open McDonalds' appeared before me – with at least a dozen vehicles in the drive-thru., each with a hand dangling from the driver's window in eager anticipation of snatching that brown bag with the comforting red and yellow logo. The parking lot was virtually empty, so I pulled into a parking space right near the side entrance – walked right in, stepped right up and placed my order (no line, no waiting) for a double quarter pounder with cheese,, large fries, a large chocolate milkshake and a baked apple pie. Lo and Behold – the milkshake machine was working!! Seven minutes after entering through that door, I'm comfortably seated back in my vehicle, with the engine off and radio playin' chowing down on some good old Mickey Dees.' By then the drive-thru line had grown to two dozen vehicles, like some hungry twisted cobra in search of prey. Finished my meal, threw the trash in the custom made sustainable vehicular recycling bin I carry in my car. Feeling well fed and happy, and headed for home. Fifteen minutes later, I pulled into my driveway and couldn't believe what i saw! Cardboard boxes full of food from both Blue Apron and Hello Fresh! had been delivered to my doorstep. I opened the front door and was greeted by Babushka, my Siberian Husky who jumped up and licked me in the face – 'cause no doubt that loveable hound smelled protein on my breath…. How ironic, I thought to myself – Here we are in the midst of worldwide food shortages and those Golden Arches are still glowin'' and I can get food delivered to my doorstep – usually less than two hours after I order it with any of the dozen or so food delivery apps I have on my smartphone. Apparently the Blue Apron and Hello Fresh apps somehow detected I was hungry and went ahead and placed the order without me knowing it. . What a world we live in!! . Sat down, turned on the TV for some entertainment and whaddya know…the first thing that came on was a commercial for Applebee's, followed by one for Olive Garden (where everybody's family). Next i was told that pork belly sandwiches are two for one at Arby's. Finally, before things got returned to the actual program content, there were commercials for various probiotic products and weight loss programs, and prescription drugs for resisting emotional eating and lowering one's A-1C.. "How very ironic it all is," I thought to myself and drifted off to sleep for awhile.
Good to see Abby again! Haven't seen her since her appearances on Lou Rukeyser's Wall Street Week show many years ago.
Amazingly helpful (at least for me) interview. Thanks 👍
You get really excellent presenters on your channel. Thank you for your channel.
No mentions of the big Black Swan that is climate change. It would be useful if a couple of presentations could focus on climate change and investment outlooks.
Typical …your recent losses is now a better entry point …….Wizard of Oz advisors that get their fees regardless of outcome
Historical indicators are to late to invest on
Abbey is honest, the insider traders called Federal Reserve should be abolished, never have the actions of the fed done anything except make thier partners rich, the primary dealers, END THE FED>
Put the money printing back to control of the US Treasury and make the politicians accountable for thier Spending other peoples money. Those 25 k fed employees should work at walmart.
Interest rates matter so much in the financials than why Fed kept interest rates at near 0 for so long period of time. Now, people who did not make advantages from near 0 Fed policy are made to pay the huge prices. It is awful and unethical.
GReat advice from a real humble genius….love her soft spoken ideas
Free money is the Federal Reserve indirectly lending money to home purchasers at interest rates below the rate of inflation (by printing money to buy MBS). Free money is politically popular – at least until inflation starts accelerating. Wouldn’t it be ironic if in the future voters frustrated by inflation elected a populist president that then had the Federal Reserve pursue even looser monetary policy to finance more government stimulus payments to households to help them cope with their loss of purchasing power?
Most amateur lose money because they are guided by emotions and hype. A good financial planner alleviates that. Everyone who thinks they can 'play' the market should realise that half of all profits made in the market are from dividend – not get rich quick deals. Very certain that this market will recover. the goal is to hopefully stay employed and to keep investing in the market which is exactly what I'm going to do. Find a way to get promoted while investing my money and staying as frugal as possible. My portfolio currently up to 20% from Q1 of 22.
Buy the dip or wait.
My condolences to anyone retiring this year..
with all due respect, Abby is incorrect. The Fed has zero chance of not causing a recession. She is very smart and well versed, but quite often experts are wrong. But overall good interview.
Russia never weaponised it’s energy reserves, it always respected its economic obligations. America orchestrated the economic warfare,
Americans are being fooled every day on mass media.
She keeps saying there are implications, but does not follow up by stating those implications directly
Just another experienced economist using cliches and stock market jargon.
THanks. Great video. I generally agree with AJC. A few points: WRT the comparison with the 70s, we had more than a 10 year stimulus lead up to this patch of inflation. Also; while Wage gains are less contractual now, if wages don't go up with inflation, living standards drop. Which is very bad for society, especially those with lower incomes. So we either have a wage price spiral or we have a drop in living standards, neither of which helps the economy,.
She's just another useless know nothing who should be baking cookies for her grandkids.
Core CPI and PCE stripped from "volatile food and energy" makes VERY little common sense as a measure of inflation. People have to eat, drive their cars and air condition their homes. WHY by any sane logical rational economist analysis would these values be left out???? Furthermore why such a deference to "Professor" AJC when these are question that are truly elemental to the analysis of what is going on and how a "retail" investor should position themselves to protect their earnings?
Rebalancing and reversing of portfolios all depend one one question. How will the degenerates in the stock market respond to the potential of the next Fed pivot or put? The stock market looks just like a macro fractal of the crypto market.
China economic disruption unknown unknowns.
Post WW2 by default the US became a super power. Post economic viral and financial disasters in Europe and Asia, the US hegemony economic, financial, and military appears to be strengthening. No mention of the how the current administrations actions will put into motion an alternative to USD reserve currency status.
Aby Cohen completely missed the March 2000 tech crash, a few days before, she was forging full ahead. She lost all my trust back then, despite credentials & working for Goldman. Tread carefully.
Wow, what insight, US equities.
Not an investment rock star in my book. Her public posture has always been that of a cheerleader albeit a seemingly cautious one. Even the one recommendation is sufficiently nebulous to reconfirm this pattern.
Starting off into an investment firm has been pondering lately in my head,I often wonder how top level investors are able to become millionaires off investments. I do have a significant amount of capital that is required to start up but I have no ideas of what strategies and directions I need to approach to help make decent returns in the market.
BUY! SELL! JUMP!
such a wealth of experience, appreciated
Somewhere over the rainbow … there's a bull market, just leave your money with us … what do you need … milk, bread? No problem …
us stock market has several trillion dollar companies, even valuation of crypto is over a trillion🤣
Another wrinkled stock-grifter, simply sproiking a morally bankrupt cabal. Bald faced lying underway kids.
🙏🙏🙏✌🏻🤞✌🏻
By far, she has been one of your most impressive guests ever!! Incredibly astute observations by Ms Cohen.