 Welcome back ladies and gentlemen to The Prince of Investor here live on thinktecawaii.com and also whatever you may catch us around the globe even though we're live in Hawaii. I'm coming live all the way from the beautiful state of Denver, Colorado. Don't forget to hit that like, subscribe, comment, share button, leave some comments all of the great stuff like that and as always I don't have a lot of time but I definitely know you guys and girls don't have a lot of time so we're gonna jump straight into it. So in this video or podcast have you may catch this, we're going to talk about the Fed interest rates, the Fed interest rates hiked and how may they affect you. I know you guys saw this in the description box so we're going to jump straight into it. So what we're going to talk about, I'm going to talk about four ways that it can affect you. We're going to talk about four ways that it can affect you, one, two, three, four. Then we're going to talk about the interest rates, why they raise the interest rates. Ways you can invest to kind of profit from the interest rates and what does the interest rate tell you and who is doing this and this is a magic man behind the scenes. So, let's get straight to it. Number one, everybody, just like every American, it's the American way to have a credit card, right? And once you have a credit card, you know, we all have an interest rate. Your interest rate may be 10%, some people may have 15%, some people have 20%, some people have 30. The interest rate depends on your credit score, right? So your credit score, so essentially your interest rate can change. It's variable, right? It's variable. It can depend on your credit, the bank interest rates, whatever you may have to do with your credit card. The most credit cards have a variable interest rate. Now, you got to think about it. As the federal government raises its interest rates, what happens to your credit card interest rates? Boom. It can raise as well, right? Because where does the federal, not the federal government, but what are your bank gets, where does your bank get its money from? It gets its money from Fed. The interest rates that they're messing with are moving up and down. It is the fee that they charge banks. So it's common sense. If you buy something for $5, what are you going to sell it for? 6, 7, 8, right? If you buy something for $10, what are you going to sell it for? 11, 12, 13. Hey, we all know how to base the concept of how a bank is set up, right? A bank is, you know, they pretty much take your money and lend it out to somebody else for a high price. When you, when it's sending your savings account, they give you 1%, and that's been modest. Some accounts give you 1%. They give you 1%, then they take your money and then they loan it to someone else for 10, 11, 12, 13, 14%. And they take the difference. That's how a bank works. So the bank is getting its money from the federal government. Your price is passed to the bank. The bank is going to pass you. So if the bank has a 3% interest rate, it's going to probably charge you 4%, right? If the bank has a 10% interest rate, you guys catch my drift, right? So if you have a credit card, in the interest rates, if the banks are being charged more for money, that can affect your credit card, right? Because your credit card has a variable rate, you know, for everybody that cares a credit card, it has one just about all Americans do have some form of credit. And credit card, that's one that you can affect. Number two, the mortgage rates, you know, mortgage interest rates. You know, your mortgage interest rate, you know, the one that you go out and you decide to buy a house, if all my people are able to decide to buy a house, if you buy a house, are you borrowing money from the bank? Where does the bank get his money from? Where does the lender get his money from? You're right. You guessed it. You guys, the genes is already from the federal government. So if the federal government interest rates those up, it can affect your mortgage. That's number two. Number three, student loans. How many of you guys out there have a student loan? You know, for people out there who are going to school or looking to inspire and go to school, if you go to school, you know, say you don't have the money and you want to take a class and the class costs 800 bucks. You have the option of putting it on a credit card, taking out a person alone or getting a student loan. Most people like to take student loan route because student loan route, and if you're smart, don't do something dumb like I've done in the past. Don't pay for a class on a credit card. Stupid. The reason why it's stupid is that the credit card has the highest interest rate. That's what, 10%, 15%, right? And you might as well go through the process, get a student loan that's going to charge you one or 2%. So you better off with paying a student loan back that way. But the thing about it, once you get a student loan, you know, if you put it on a credit card, maybe you had a possibility of clearing it off in a bankruptcy, if you have a five-bankruptcy. But you know, you can't wipe off student loans. Pretty much they got you for life and they can garnish and check behind federal student loans. They can do all types of things behind federal student loans. So that's a pros and cons. You put it on a credit card, that's 10%, 15%, 20% for that class. By the time you pay it off, you're going to pay two, three times more for it. You guys know how that goes. Or you can get a student loan that may charge you one, two, three percent. But when you borrow money from other fans for education, we all heard the stories, right? But that's the pros and the cons. So that's number three, student loans. Because student loans is a federal government loan. Federal government loan, unless you go get a private student loan. Even if a private student loan or a federal government loan, because all banks are working upon the feds. People like to call them feds, federal government, right? And that's why you always, it's a big deal when the Chair of another Federal Reserve talks. So that's number three. Number three. Number four. Auto loans, cars. How many of us borrow cars? Now, if you already bought a car, you got a fixed interest rate, you're good. But if someone who's looking to buy a car, then, you know, the government, where does the bank get that money from? That's another thing that everybody I see walking around in life. So that's four things. Number one, credit card. Number two, mortgage, credit card rate, mortgage interest rates, student loan interest rate, and auto loan interest rates that can be affected by the federal government interest rate hike. Now, every time a fed talks, the investing world gets quiet. When it was Jane Yellen, they used to call her mother-goose. Now, she was a lady, for example. So they used to call her mother-goose. And with mother-goose, whatever she says, it's people listen to it big time. They're like, oh, wow, the government is raising interest rates. Because when interest rates go up, now, the people may buy less houses because people are not getting interest rates out as well. So it may cool down the market. It can cool down the stock market. For a prime example, where do companies get the money? As money gets tight, as money becomes tighter, it's harder to borrow because when interest rates go up, they pass on high interest rates to the bank. The bank has less money. When the bank has less money, it's tighter with lending money out. Money becomes tighter to lend it out. Companies can't borrow like they used to. They can't create more products. It slows down the expansion, which, and inversely, cools off the stock market. That's why people pay attention to it, especially Wall Street. Everybody's glued into their ears. Everybody's always talking about the federal government interest rate hike because they don't know what's going on. If the government raises the interest rate, it could potentially cool off the stock market, which is very, I won't say very bullish, but it's pretty bullish right now. So that's why economists pay attention to it. And I just gave you four reasons why you should pay attention to it. Your credit card, your mortgage, your student loans, and what else? Auto loans. Those are four things I can just think of off the top of my head. Now, the thing about it, as now, we spoke about it being from a consumer. Then we spoke about it being from the business side of the house. If you're a business, you have a revolving lot of credit, and you need to borrow money to purchase, you need $50,000 to make shoes. So you can sell these shoes to other people. So if you don't qualify for the loan, or they say, hey, well, we're not going to give you the $50,000 because, you know, we have raised our requirements for you to borrow this money. Now you can't make the shoes. You can't make the shoes. You can't expand all of the good stuff like that. It slows down production. And it's done that way because why would you want to cool off the stock market? You want to cool off the stock market because you want inflation, but you don't want too much inflation. What is too much inflation? Hyperinflation, right? So you don't want too much inflation because you can go into hyperinflation. What I mean by hyperinflation? Just imagine a world where everybody has $1,000, but a loaf of bread costs $1,000. Right? That's hyperinflation. There's just too much money in the economy, too much money going around, things like that. Then if you go to reverse way, it's called deflation. So you don't want deflation. You don't want hyperinflation. You kind of want inflation to grow at a nice 2% to 4%, right? And that's what the federal government does. They raise interest rates. They think the market is getting too hot. They raise interest rates. When they think the economy is getting cold in 2008, they lowered interest rates. 2008 when the market crashed, they lowered interest rates to stimulate the economy to make money easy to push money into the economy. Right? So that's why you see my people buy houses, business, start to borrow money, stuff like that. So those are the ways the federal government handles interest rates that affect the whole world. And that's why you always hear people listening, oh, federal government is going to change interest rates. They're going to change interest rates the same. Now, on the investor side of the house, well, let's talk about why do they change interest rates. So what sparks don't want to change the interest rate? Things that they're looking at. They're looking at the stock market house, the stock market before me. It's a stock market going up. It's a stock market going down. It's a stock market stand. It's a stagnant or whatever, right? So the stock market continues to go up, up, up, up. That could be indication of a unemployment. What is unemployment? It's unemployment high. Unemployment low, right? It's unemployment growing. We're at an all-time low. I don't know if it's an all-time low, but we're pretty low on unemployment. And so that tells me that people are working. People are not falling for unemployment. They may be, now it doesn't tell you if these people are underemployed, right? I don't know of an index that tells you like, hey, people are underemployed. Like take someone like myself, right? I have an MBA. And let's say if I was working for $10 an hour at Subway, am I employed? Yes. But am I underemployed? Yes, right? So I haven't heard of an index tracking people that are underemployed. You know, I've been to restaurants plenty of time and seen people with college degrees that are, you know, servers. And you know, you would think like, hey, well, they went to school. Shouldn't they be doing ASYZ? They're underemployed. So they look at employment. They look at employment, how many people are working, bullish markets. They look at how many people out there are, you know, they look at inventory, things that are growing economy. The leading indicators that I spoke about that I made a video about and made a podcast about as well about they're looking at ways to how many people are building houses, you know, things to say, hey, the economy is doing well. And they look at the economy is doing well. Those are the things that make them raise and lower interest rates. Now, we spoke about the four ways you can affect you. We spoke about the, we spoke about why will somebody raise it out of infection. Now we're going to talk about ways you can invest and what does it mean to an investor. As an investor, how do you spoke about it? Well, with their economic data, I'm not saying they're correct or they're right. But in that time of the 10, they're privileged to more information than the average investor. And they're looking at their leading indicators. They're trying to see where the economy is going so they can adjust interest rates because we live in a very low interest rate society. So they look at, hey, well, interest rates are kind of low. This picture into our economy. Do we think our economy is going up? Do we think it's going down? Do we think it's kind of stacked? They decided to raise interest rates, meaning they have a bright outlook on our future. Now, as an investor, what does that mean? Prince, that means that we're probably going to go into, maybe put the next quarter or the next month or at least the next quarter. That probably means that we're probably going to go into a bull market, right? You know, record this. This today is September. It is a September 20, 2029. And we're going to see October, November, December. Come December, if the stock market is going to be higher and lower than it is today. And today, S&P 500 is about 29. The S&P 500 is about 29,000, right? Hit the time highs. And we're going to see how they're going to do in three months. As an investor, what can you do? One, you could slide into the index or some of your favorite equities, stocks, too. You could get more risk year and buy, you know, leverage ETFs that track the S&P 500 like XPL, Dow, I can't remember what it is, DLW or whatnot. Those are the ones that you've been looking to. And also, if you were extremely risky, you can purchase call options on the index. Now, granted, I'm not saying you're telling anybody here that they should do any of this. I'm just educating you guys the way people look at things and saying, hmm, if the federal government, if you believe in the federal government, they're saying the economy is doing good and it's going to do better and for the next quarter and it's done good this past quarter. I'll give you guys a little hint. Did you read the LEI? From the conference board, I read them. And they were, the economy was doing pretty good in August. So that's led to an interest rate height and that could be the indicator of going into the holiday season. Well, as we see this, going into the holiday season, how much is going to be done, right? How much is going to be done, but we're looking at how much is going to be, how much the market could go up. Those way, you can look to probably profit from what the federal government is putting out. So right now, interest rates are at 2.25, right? They only put them up by 25%. Usually when they move them, they move about 25%. And since I've been here, it's kind of been going, you know, up, up, up, up, you know, or whatnot. So those are the ways that I want you guys to look at it and think about it, right? So every time you get a federal government, come December, the Federal Reserve Chair, they're going to sit down, Federal Reserve Chair, someone who's appointed by the president and you know, approved by the Senate. But the Federal Reserve Chair, they're going to sit down, they're going to look at the economy, they're going to try to figure out where the economy is going. So they keep, they got three options. Lower interest rates, keep them the same that mean they have a bright outlook on the economic future. So they take in their data and you know, they're usually pretty smart people, but nobody knows the world of investing because if we did, you know, everybody would be, you know, it wouldn't be investing because everybody has to figure it out. But sometimes you get some right, you get some wrong. But these are tools to put in your tool box. Actually, the federal government is saying, what are they doing interest rates, right? What are they watching? Why are they raising interest rates? And what does raising interest rates mean? But now you know that. You know why interest rates go up and down. You know how open they meet every quarter. You know how they can affect your personal life. You know how to affect an investor. And you also know ways that you can profit this and be able to educate somebody else. Right? So I think that concludes us for today. You know, it was a great episode to talk about the federal government interest rates. The next federal reserve hike, which is coming in December, and they happen every quarter. And, watch out. Well, well, well, before we get out of here, I want to tell you some ways that you guys can kind of look at things. If the reserve interest rates go up or down depending on what it is, you could refinance your mortgage. You could take, you know, if you had a mortgage, you could refinance your mortgage if you get a higher or lower interest rate depending on what situations are going on. Credit card, you can move your money off your balance of your credit card. That is zero percent and get a new one. You can kind of do that type of shouldn't be, right? If you are looking to get an auto loan, if you're looking to purchase a house and you see interest rates are going up, up, up, up, you may want to make a move on a house if you're in the real estate market. So all type of ways you can count up a negative that information, but these are more tools for your two bucks. And as you hear things go across, you see how things line up in your economy, your money and what you're doing, your investment strategy and ways that you can profit yourself. But without further ado, thank you guys for everybody that has tuned in next Saturday, October 6th, I will be returning home and I'll be doing a book signing on October 6th at the Burke County Library of my Wesley Lerner series. Then what have I got plans? I don't like to talk about my future plans but that's my next one. If you're in Wainsborough, George Brecht and my hometown stop by, say hi. I'll be down at the booth and hey and all the great stuff like that. And I'll just keep it moving. But always, oh, and thank you guys for all the congratulations on the accredited financial counselor, you know, finish the certification in and I'm on to the next one. So, thank you. But until then,