Stock Market Set for Major Moves: Felix Prehn’s Insights from Goat Academy
Discover Felix Prehn’s latest analysis on the stock market, including why Wall Street is bullish, the impact of money printing, and what’s driving demand, from Goat Academy.
The stock market is entering a period of high activity, according to Felix Prehn, the founder of Goat Academy. Recent events have surprised even experienced investors on Wall Street. Understanding these changes is important for anyone interested in growing their wealth.
US Consumer Confidence Surprises Wall Street
Recently, US consumer confidence has been stronger than expected. This means that people in the United States feel good about their financial future and are willing to spend more money. When consumers are confident, they buy more goods and services. This helps companies earn more, which can push stock prices higher.
Big Buying Expected in the Market
Major investment banks, like Morgan Stanley, have reported that about $15 billion in new money is entering the stock market every day. This money comes from three main sources: retail investors (regular people), computer-driven funds (called CTAs), and large companies buying back their own shares. When companies buy back their shares, it reduces the number of shares available, which can make each share more valuable.
Why Money Printing Matters
The US Federal Reserve, often called “the Fed,” has been printing more money. This means they are increasing the amount of money in the economy. When there is more money, people and companies look for places to invest it, such as stocks, bonds, and real estate. This can drive up prices in these markets. However, if you do not own assets like stocks or property, you may find it harder to keep up with rising prices, a problem known as inflation. Inflation is when the cost of goods and services goes up over time.
Asset Inflation Explained
Asset inflation is when the prices of things like stocks, real estate, and luxury goods rise faster than everyday items. For example, if the stock market goes up by 25% in a year, it means that owning stocks has become much more valuable. People who only keep their money in cash may find that their money buys less over time.
Key Event: NVIDIA’s Earnings Report
One of the most important events for the stock market right now is the earnings report from NVIDIA, a leading technology company. Earnings reports show how much money a company made in the last quarter. If NVIDIA’s results are better than expected, it could push the whole market higher. However, some experts warn that expectations may be too high, making this a risky moment for investors.
Strong Demand for Technology
There is also strong demand for computer chips and cloud computing services. Companies like Microsoft, Amazon, and Google, known as “hyperscalers,” are using more computing power than ever before. This is measured in “tokens,” which show how much computer work is being done. The demand for these services is growing quickly, which is good news for technology companies.
Understanding Market Patterns
Felix Prehn emphasizes that the stock market moves in patterns. By learning these patterns, investors can make better decisions. News is important, but knowing the rules and trends of the market is even more valuable.
For more about Felix Prehn and his approach to investing, visit the Felix Prehn and Goat Academy page.