Investing Insights

When Will the Fed Finally Cut Rates?

Feb 2, 2024

In this podcast, we discuss Tesla's slower growth in 2024, Verizon's strong Q4 results, and Netflix's booming subscriber growth. We also dive into the total cost of owning an ETF and explore why the costs of ETFs vary. Additionally, we debate when the Fed might start cutting interest rates and analyze the benefits and risks of this decision. Overall, an informative and timely episode!

15:51

Creator website

AI Summary

AI Chapters

Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Tesla plans for slower growth in 2024 but aims to boost delivery growth in 2026 through the launch of an affordable vehicle.

Verizon's strong Q4 performance reflects solid pricing discipline and a focus on adding post-paid phone customers.

Deep dives

Tesla's Shift in Strategy and Growth Expectations

Tesla announced a strategic shift during its earnings call, signaling slower growth in 2024. The company plans to develop an affordable vehicle and make its current lineup cheaper. Morningstar expects delivery growth to be 10% this year and 6% next year, significantly lower than the 50%+ growth Tesla has seen in the past. However, launching an affordable vehicle in 2025 could lead to higher delivery growth in 2026. While automotive margins may decline during this period, profit margins are predicted to expand in the long term. Morningstar currently values Tesla shares at $200 and recommends waiting for a lower price.

Introduction

4min

Factors Affecting an ETF's Annual Fee and Minimizing Transaction Costs

2min

Transaction Costs, Holding Costs, and the Fed's Plans for Rate Cuts

4min

Analyzing the Benefits and Risks of Cutting Rates

3min

Federal Reserve's Interest Rate Decision Based on Inflation Numbers

3min

Interest rates could likely be coming down, we discuss when, and we also talk about how much an ETF costs. And as the Magnificent Seven results start to roll in, are some of these stocks a buy?

00:33 Tesla’s Slower Growth in 2024

01:37 Verizon’s Strong Q4

02:36 Netflix’s Booming Subscriber Growth

03:31 The Total Cost of Owning an ETF

04:19 Why Do the Costs of ETFs Vary?

04:49 How Should Investors Measure ETF Holding Costs?

05:39 Tracking Costs vs Tracking Error

06:21 What Are Transaction Costs?

06:51 Holding Costs vs Transaction Costs

07:45 Fed Unlikely to Cut Interest Rates in March, but What About May?

Read about topics from this episode.

Tesla Earnings: Slower Growth Expected in 2024