Inflation, Interest Rates, and Investing with Felix Prehn
Learn how Felix Prehn of Goat Academy explains inflation, interest rates, and smart investing strategies to help you achieve financial freedom.
Inflation, interest rates, and market trends are topics that often confuse investors. Felix Prehn, the founder of Goat Academy, explains these topics in a way that challenges common beliefs. He makes complicated financial ideas easy to understand, helping people make better investment choices.
The Truth About Inflation
Inflation is often misunderstood because of how it is measured. A large part of the data comes from "shelter inflation," which includes housing and rental prices. However, the way this data is collected is not reliable. For instance, homeowners are asked how much they think their property could rent for, which is just an opinion and not based on actual market conditions.
Abilities like Truflation, which measure actual prices paid by consumers and businesses, show that inflation is closer to 2%. This is the Federal Reserve's goal. This difference highlights why it’s important to look at more accurate data instead of relying only on government reports.
Why Interest Rates Will Fall
Interest rates are a critical factor for investors. Currently, the Federal Reserve is expected to maintain high rates until late 2025. However, Felix Prehn explains why rates are likely to drop sooner.
Many U.S. banks, especially regional ones, invested heavily in government bonds when interest rates were near zero. As rates rose, the value of these bonds plummeted, leaving banks with significant losses. To stabilize the banking sector, interest rates will eventually need to decrease. Lower rates will also benefit consumers by reducing costs on mortgages, credit cards, and small business loans.
How to Navigate the Market
Felix highlights how important it is to understand market patterns. Stock charts show all the key information about a company, including how people feel about it and what they expect. By learning to read these charts, investors can find good opportunities and avoid big risks.
For instance, Felix uses abilities like TradeVision to spot signs that a stock might rise quickly. These signs help investors know when to buy. Companies like Palantir and SoFi are examples of stocks that saw big gains after these signals appeared.
The Bigger Picture
Felix Prehn believes that financial freedom is about more than just money. It’s about having the ability to live life on your terms, whether that means traveling, spending time with loved ones, or pursuing your passions. By understanding the market and making informed decisions, anyone can achieve this freedom.
For more insights into Felix Prehn and Goat Academy, visit the About Goat Academy page.