Real Cash Flow Podcast #12
Hosts: Andrew Michael Arroyo & Gary Giffin
In the latest episode of Real Cash Flow, host Andrew Michael Arroyo delves into the Federal Reserve’s influence on interest rates, the bond market, and real estate investments. Joined by real estate expert Gary Giffin, this episode is essential for those looking to make informed financial decisions.
Arroyo explains the Fed’s role in controlling the overnight lending rate, debunking the myth that it directly impacts long-term rates. He clarifies how the Fed’s policies influence the bond market, which in turn affects mortgage rates. Giffin adds valuable insights, highlighting that Fed announcements don’t immediately change mortgage rates, but understanding the relationship between the 30-year mortgage and the 10-year bond is key.
A crucial takeaway is the yield curve, showing the relationship between short- and long-term rates. Arroyo explains how an inverted yield curve can signal a recession. The episode also touches on quantitative easing, where the Fed buys bonds to influence long-term rates.
Looking ahead, Arroyo and Giffin discuss future market trends and investment strategies, including the impact of AI on financial markets and the potential for a real estate recovery. Giffin underscores real estate as a stable, long-term investment, sharing his approach of investing in both real estate and metals.
This episode of Real Cash Flow offers valuable insights into navigating the Fed’s role in financial markets and making smarter investment decisions.
Tune in to Real Cash Flow to stay informed and make confident financial choices!