00:00Why did the stock market go up if rates also went up? Because whenever interest rates go up,
00:05it's supposed to have a cooling effect on the economy. So why did the opposite happen?
00:09And it happened because the stock market is what's called forward-looking. It's always trying to
00:14make a prediction about the future. And right now, the stock market predicted seven rate increases.
00:19So the second question is, where did it make this prediction? And I was not notified. Where do I
00:24find this information? And you can find it here in what's called the dot plot, which is directly
00:28from the Federal Reserve. Each dot is supposed to represent a member of the FOMC, the Federal Open
00:35Market Committee, and their guess for what interest rates will look like. Now, you can see the median
00:40falls somewhere around 1.75%. So if you take that number and divide it by a quarter percent,
00:45you get seven. Seven rate increases, and that's how the stock market was able to price that in.
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