Online Class Notes (Jesse)

Vocabulary

gloomy = dark and unhappy feeling

Grammar

they are not spend money – they are not spending money / they don’t spend money

Pronunciation

home

plain 

New rules with rising rates (raeeeeets) and the end of cheap money, he outlines a sharper approach to investments and opportunities.

Soaring inflation , rising interest rates (raeeeeets) and a global recession are a horror prospect for investors already nursing losses to their paper wealth, after house prices followed (go toooooo) stock and bond markets lower last year.

As interest rates (AY) rise (EYE) , asset prices fall – and the kicker is that investing rules have changed (AY) after central banks reversed a decade (AY) -long policy of cheap borrowing (OH) rates and money printing to fund government spending.

You can’t count (AO) on central banks to bail (AY) – no lips you out now,’’ Over the last three decades, by cutting interest rates, central banks have bailed out economies and asset prices. They smoothed over some pretty significant cracks

The radical policy pivot in 2022 gave traditional investment portfolios split between 60 per cent US equities and 40 per cent fixed income treasuries their worst year since 1937, The Economist says.

‘‘ Inflation – although it’s trending down – is still miles above target,’’ So I characterise this as the first slowdown or crisis many investors have seen where the response won’t be to cut interest rates to bail (smile!!) out asset owners and economies.’’

In the era of easy money, bad news was good news as central banks would respond by loosening interest rate policy.