Navigating a High Rate Market: Buying a Home, Preparing for a Recession and Where to Put Cash with Ben Carlson

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May 24, 2023

Ben Carlson, a financial advisor at Ritholtz Wealth Management and author, shares his expertise on the current economic climate. He breaks down the effects of Fed rate hikes, touching on bank collapses and the debt ceiling. Listeners learn where to park cash effectively, comparing options like I bonds and high-yield savings. Ben also offers savvy strategies for home buying in a high-rate market, emphasizing personal circumstances and the potential for undervalued properties. His insights are a must for anyone navigating today's financial landscape.

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INSIGHT

Strong Economy

The economy remains stronger than expected despite aggressive Fed rate hikes.
Unemployment has fallen, contrary to the Fed's intentions, while spending remains robust.

INSIGHT

Fed's Rate Hike Strategy

The Fed's aggressive rate hikes aim to prevent entrenched inflation like in the 1970s.
They fear a wage-price spiral, where rising wages push up prices, requiring further wage increases.

ANECDOTE

SVB Collapse Experience

Chris Hutchins shares his experience as an SVB customer during the bank collapse.
He ultimately switched to JP Morgan Chase due to concerns about the new bank's treatment of employees.

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