00:00But no matter how much economists try to tie in interest rates to outcomes in the stock market,
00:05in the end, even interest rates don't really make a huge difference to investing,
00:09and here's a good example of why. The S&P 500 is up almost 20% this year,
00:14and the NASDAQ, which is made up of mostly tech stocks, is up a huge 36%
00:18in a time when interest rates are relatively high. And how does that make any economic sense?
00:24Historically, it doesn't. In 2018, for example, interest rates started at 1.5%,
00:29and the highest they ever went up to was only 2.3%. Those interest rates are much lower than
00:34where we are today, so you'd think cheaper money means people borrow more to buy more assets,
00:40therefore higher asset prices. But that same year, the stock market was down almost 4.5%.
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