The End of Easy Money Investing (Goodbye, Fed Put)

Ajouté : 2026-06-02

[00:00:00]All right, we have a new Fed chair.

[00:00:01]Jerome Powell's officially out as the Federal Reserve chair. Kevin Warsh is in and here's why this might change how you think about investing. Because for the last 15 years, the Federal Reserve under Jerome Powell has printed a lot of money. They have done quantitative easing, which has increased liquidity and they've essentially created what's known as the Fed put where whenever we have high volatility in the stock market, investors [music] can count on the Fed to step in and increase liquidity and that cheap money has to go somewhere. So, investors piled into stocks. Usually tech companies, growth stocks. Why? Because there were very few alternatives to outpace the money printing coming out of the Federal Reserve. But, Kevin Warsh has a completely different philosophy for the Fed. He has publicly stated that he wants the Federal Reserve to be quieter, >> [music] >> less involved. They don't want to give as much guidance. Forget about the dot plot where they're projecting where interest rates are going to go in the next few quarters. So, here's my honest take on this. I do not think we are going back to zero interest rates. I do not think that we're returning to a free money world, which means the easy money era that drove stock market returns for the last 15 years is most likely behind us. What does that mean practically for your portfolio? In my view, sitting on cash quietly losing money to inflation is not a strategy. Chasing growth stocks the way investors did under Jerome Powell might be a riskier game than it used to be in the current economy.

[00:01:24]Therefore, I think the investors that are going to thrive in this new market cycle are the ones that are going to be owning assets that generate real income every single month. The companies and assets that have pricing power that can push through pricing increases higher than inflation where real cash flow is being generated through hard assets.

[00:01:42]Real estate, real estate loans, oil and gas investments. So, not just paper gains, but actual cash flow investments I think are going to lead through this next [music] cycle.