Prof G Markets What the 2024 Rate Cutting Cycle Could Mean For Investors — ft. Lyn Alden
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Sep 12, 2024 
Lyn Alden, an independent analyst and author of "Broken Money," shares her insights into the upcoming rate-cutting cycle and its potential impact on investors. She explains why she's optimistic about Bitcoin's future and reveals that it might be a smart time to consider emerging markets. Lyn also offers practical advice for new investors looking to build their portfolios effectively. Tune in for a thought-provoking discussion on navigating economic uncertainties and seizing investment opportunities!
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Rate Hike Impact
- The US economy has been more resilient to rate hikes than predicted because private debt was locked in at low fixed rates.
- Ironically, government debt wasn't locked in, so raising rates increased the deficit more than private interest expense.
International Market Opportunity
- International markets present a rotation opportunity during rate-cutting cycles, especially when capital is concentrated in US markets.
- This upcoming rate cycle has both conditions: a rate-cutting cycle and concentrated US capital.
Unintended Consequences
- Rate hikes had unintended consequences: housing prices rose, and extra cash compensated for higher interest costs.
- Scott Galloway questions if rate cuts could cause a serious drawdown in home values and stock prices.
