Why the Fed’s Decisions Matter: Insights from Felix Prehn and Goat Academy
Discover how Felix Prehn of Goat Academy explains the impact of Fed decisions, gold’s rise, and market trends for Tesla, Nvidia, and more in 2025.
Felix Prehn, the founder of Goat Academy, shares his latest thoughts on the stock market and what investors should know in 2025. His approach is simple: help people understand what moves the market and how to make better decisions with their money.
Understanding the Fed’s Role
The Federal Reserve, often called the Fed, is the central bank of the United States. It sets interest rates, which affect how much it costs to borrow money. When the Fed changes these rates, it can make stocks go up or down. Felix explains that after the latest Fed meeting, most officials expect two interest rate cuts this year. Some think there could be more, especially if the economy slows down or inflation changes.
Why Do Rate Cuts Matter?
A rate cut means the Fed lowers interest rates. This usually makes it cheaper for companies to borrow money and invest in growth. For fast-growing companies, like those in technology, a 1% rate cut can boost stock prices by about 10%. For more traditional companies, the effect is smaller. Felix points out that even small changes in rates can have a big impact on your investments.
Is July a Bullish Month?
Felix shares a common belief among investors: July often brings a “mid-year rally,” where stock prices rise for about 12 days. While this doesn’t happen every year, many people expect it, and sometimes their actions help make it true. However, real-world events, like global politics, can change this pattern.
How to Spot Winning Stocks
Felix teaches a simple three-step process to find “breakout stocks.” These are stocks that are about to rise quickly. The key is to buy before the big jump and sell before prices fall. This method does not require a finance degree or lots of money. It’s about watching where big investors, like those on Wall Street, are putting their money and following their lead.
Gold: The Top Performer of 2025
So far in 2025, gold has outperformed many other investments, including Bitcoin and major stocks. Gold prices are up about 28%, and some gold stocks have risen even more. Felix says this success is not about guessing the gold market. Instead, it’s about noticing when large amounts of money start moving into gold and following that trend.
Geopolitical Risks and the Market
Felix also discusses how world events can affect the stock market. For example, there are rumors about possible conflict between the US and Iran. If something major happens, it often occurs on weekends, giving the market time to react before trading starts again. Investors should be aware of these risks, as they can cause sudden changes in stock prices.
Conclusion
Felix Prehn and Goat Academy focus on making investing simple and clear. By understanding the Fed’s decisions, following market trends, and keeping an eye on world events, anyone can make smarter choices with their money.
Learn more about Felix Prehn and Goat Academy here.