Name: The Stock Market Just Crashed - Buy The Dip
Uploaded: 2026-03-29T02:46:16.000Z
Duration: 17 min 6 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

Adverbs of degree

The stock market just finished one of its worst weeks of the year, and

everybody's focused in on which stocks are falling but the part that most investors are overlooking has nothing to do with stocks and has everything to do with the bond market.

Because for the first time in 2026 investors are now pricing in a more than 50% chance, a 52% probability that the Federal Reserve Bank will have to raise interest rates, not cut interest rates, in 2026.

Now, if you've been subscribed to this channel, that's probably not too surprising for you because we've been talking about this potentially happening, but

now because investors are concerned about the Federal Reserve Bank having to raise interest rates more in 2026, it has the stock market hurting because of that.

Because oil prices keep going higher, because inflation keeps getting revised higher, while at the same time the economy continues to slow down, and

this is where investors have concerns as to what's going to be coming next.

So in this video I want to talk about what this means for your money, your investments, your retirement, but

also what this means for things like your mortgage rate.

When the United States attacked Iran, the first thing that happened was oil prices shot up.

Now, the reason why is because the Middle East is not only a big supplier and producer of oil but also they're a big controller of the global supply and shipping of oil because Iran controls something called the Strait of Hormuz which is where 20% of the world's oil flows through, which means it has become significantly more difficult to get oil from one part of the world to the other which is why oil is more expensive.

High oil prices mean high gas prices, it means higher diesel prices, it means higher shipping costs, it means higher airfare costs, and

that means groceries become more expensive because of higher oil.

Because we've already been concerned about inflation even before the United States attacked Iran because we were getting the reports that inflation was going up, not down, in 2026 before these attacks started.

Now that the attacks have started and oil prices have gone up, the concerns are that inflation is going to get even worse.

Because the Federal Reserve Bank is the central bank here in the United States, and

what that means is their job is to control our money system.

Their job is to monitor money, and really they have two roles.

Number one is to control inflation, but also number two is to keep the economy strong.

Well, normally when you have concerns about inflation, when there's high inflation, what the Federal Reserve Bank normally does is they raise interest rates.

That's what we saw happen between 2022 and 2025.

After we had this huge inflation crisis from the pandemic, the Federal Reserve Bank raised interest rates aggressively which is why mortgage rates went up, car loan rates went up, and

when they raised interest rates that was there to try to cool down inflation.

When you have a slow economy, you have a recession like we saw happen during the pandemic in 2020, that's when the Federal Reserve Bank cuts interest rates.

Cutting interest rates mean it's cheaper to borrow money, more people get a mortgage, more people buy cars, and

And so in 2020 the pandemic hit, the economy was shut down, and

interest rates were brought down to the lowest levels that we have seen in history which stimulated the economy.

But the consequence to cutting interest rates is high potential inflation.

2020 interest rates were cut, the economy was then stimulated, and then inflation became a problem.

2022 inflation became a problem, and that's when the Federal Reserve Bank started raising interest rates.

They continued to raise interest rates to 2024, 2025, and now they've been cutting interest rates.

They've been cutting interest rates because we've been seeing a slowing job market, we've been seeing a slowing economy, and

now we're in a tough situation where on one hand the economy is slowing.

Our most recent data show that our economy has still been growing but not as fast as it was before, while at the same time the job market is severely slowing down, while at the same time inflation is picking up.

High inflation means we need higher interest rates.

Slowing economy means we need lower interest rates.

Well, the Fed can't cut interest rates and raise interest rates at the exact same time so they have to pick what they're going to do, and

the decision that they make is going to impact somebody negatively, but

that also creates potential investment opportunities, and

that's where I want to dig a little bit deeper.

By the way, we have been covering all of this in market briefs.

Again, market briefs is my free financial newsletter for investors where every day we're working to break down what's happening with things like the economy, housing, stocks, crypto, and

global markets into a fun, witty, and easy-to-read newsletter.

You can read it in less than five minutes every morning, and it's completely free.

So if you have not joined market briefs yet, I invite you to join because it's free, and

if you don't love it, you can unsubscribe at any time, and

I have the link for you down in the description below.

And this is where the Federal Reserve Bank now has to make a decision on what they are going to do.

Up until essentially now, the Federal Reserve Bank had said time and time again that we're going to cut interest rates in 2026 because we want to stimulate the economy, we want to stimulate the job market because the job market is not so good, and

we want to encourage the economy to grow.

Well, now investors for the first time in years are saying, "I don't know if that's true." It seems like we're going to have to raise interest rates, and

I've told the story a few times, I'm going to say it again because while history doesn't exactly repeat itself, it does rhyme.

The last time we've seen something like this happen was the early 1970s.

In the early 1970s we faced an inflation problem because in 1971 then-President Richard Nixon took the United States dollar off of the gold standard which meant now the government could spend an unlimited amount of money, the central bank, the Federal Reserve Bank could print an unlimited amount of money, and

But the consequence was all that money printing caused inflation.

So in the early 1970s we had an inflation problem because of all the money printing that happened.

After the inflation problem from the money printing, we then saw an oil crisis around 1973, 1974 because the United States got involved in a conflict in the Middle East which caused oil prices to spike.

So now we had an inflation problem coupled with high oil prices which made the inflation problem worse.

And that was when in response the third thing happened which was the Federal Reserve Bank had to fight the inflation problem, and

the way that the Fed fought the inflation problem then was they raised interest rates.

But it wasn't a slow gradual raising of interest rates, it was a drastic raising of interest rates to fight inflation and to save the dollar because the concern was all this inflation, all this money printing could destroy the dollar, it could cause hyperinflation, and

so the Federal Reserve Bank raised interest rates all the way up to about 20%.

Now to translate what that means, that meant if you wanted to get a 30-year mortgage, you were not going to get a 6% mortgage or a 7% mortgage, you were paying 18% a year on your mortgage.

That caused an economic slowdown, it caused a deep recession, it caused a lot of job losses, but

Now the question and the concern is are we going to see something like that happen again because that in the '70s was a stagflation problem.

Stagflation is where you have high inflation and a slowing economy.

We've already kind of been seeing that happen.

Because of all the money printing that happened, and

so what happened between 2020 to 2026 is wages went up but the cost of living went up even more.

You got a raise but your rent and your car prices and your groceries got more expensive than your raise.

So the average person is effectively poorer today than they were before the pandemic statistically.

Well, now couple that with the oil crisis that we're seeing because of the Middle East.

Higher oil prices are going to make the inflation problem worse.

And now this is why investors are saying we might have to raise interest rates in 2026.

President Trump has been hoping for lower interest rates.

Even until very recently he's been saying we need lower interest rates.

But the Federal Reserve Bank is actually not federal.

That means they're supposed to make their own decisions separate from what the president says because their job is to protect money, not to protect the president.

And so when you have the situation where you have high inflation and a slowing economy, that's called stagflation.

It is the worst-case scenario because that means the prices of things are going up but people don't have jobs, and

And in that situation the Federal Reserve Bank has to decide are we going to save the economy or are we going to save the dollar.

We know how to protect ourselves against a recession.

We've seen that happen again and again and again.