The Stock Market This Week
Hey guys. A lot of things are happening with the stock market this week. (dynamic music) These are the three things that I’m watching the most so I’ll tell you about it right ‘em now. Number one is that on Wednesday there is a Federal Reserve policy statement address where they’re gonna announce whether or not they’re gonna interest rates, lower interest rates, keep ‘em the same. Just so you know, they’re gonna keep ‘em the same, but this is happening Wednesday. They’re not gonna give you any forward guidance. They’re not going to make any statements about what they expect the economy to do. They’re just telling you basically a result of their decision of what they’re gonna do with rates. This is gonna be a non-factor unless they actually surprise the market, but everything’s baked into the pie right now. It’s all baked into the fact that we don’t believe, no one believes that they’re gonna be moving rates at this meeting.
But, keep in mind that three of the members of the Federal Reserve Board, including the chairman, are new people now and they’re ll very much more hawkish than the people that they’re replacing so of all the members of the Federal Reserve Board, there’s three people who are more likely to want to raise interest rates more aggressively going forward. So, there’ll probably be nothing happening this meeting, but going forward, expect that you’re gonna see a couple more interest rates probably before the end of the year.
There’s also a nonfarm payrolls report coming out on Friday. And, the thing about this is the headline number, it won’t matter whether there’s an increase in terms of 150,000 new jobs, 250,000 new jobs. It won’t matter that much. What matters, what you should keep an eye on is the average hourly earnings, how much people are getting paid per hour. If there’s big changes in that, then that means that it will become inflationary, or it may even be a symptom of inflation that’s beginning that there’s already inflation so now people are having to be paid more to meet their bills or pay the cost.
But, if you watch that number and there is any kind of jump in the average hourly earnings, that’s how you know that there will be more inflation coming down the road pretty soon. So, keep an eye on that because it’ll have impacts on just about everything including how much you pay for things, prices of precious metals and other kind of commodities. So, that is the number you wanna watch in the report coming out on Friday. There’s also a big meeting this week between India and China. And, a big part of this, India and China have long not gotten along that great and so this represents a changing in the relationship between the two, part of which, in my opinion is being caused because of this talk of tariffs and things we’re gonna put their goods and that sort of stuff.
That is causing them to be more inclined or more motivated to work together. You’ve got India, population billion people. You’ve got China billion people. Put them together, there’s billion people. 40, 38% of the world’s population is in those two countries side by side in Asia there and India is rapidly, rapidly developing. And there’s a video I made where I talked about this a little bit the other day. And, you know what I’m gonna do? I’m going to get the link for that video put into the description of this video, like right below this video you could look at the link there and click it and then watch that video.
That’s what I’m gonna do, that’s a good idea. Now, so you’ve got India’s rapidly developing as I told you. China has got all of this manufacturing capabilities and they are used to selling most of their goods to Europe and to America and if we’re starting to make noises about tariffs, that sort of thing, they’re suddenly saying, well, why don’t we just sell our stuff to this massive, massive population that’s rapidly growing in India? We could give it to them instead. And, so all of a sudden China is less likely to be worried too much even if we do put tariffs on their stuff because they’ve got a wide open market sitting right beside ‘em and they’re just showing that now they are going to be coming together and working together for the first time. This represents a massive macroeconomic shift and this will be a big factor going forward over the next decade.
I’m absolutely certain that India will be the most rapidly accelerating country of all. They’re going to be growing very fast. A lot of emerging markets are going to grow quickly. Not like India. India’s right on the cusp, a tipping point where everybody has got mobile phones, connection to the internet. They know how to do the programming. Their understandings of us is smart. Population that’s just coming into the limelight, so to speak, and they’re gonna be growing very rapidly.
I don’t think that there’ll be any other country worldwide that will accelerate as quickly as India will in the next decade. And, with them holding hands with China now, then this is gonna change the whole dynamic of economies worldwide. This is something to keep an eye on. You don’t have to do anything, of course, but keep an eye on it. There’s a lot of opportunities that we’ll talking about that is coming from this union between China and India. And, just like we say already that India’s gonna be the fastest growing population, there’s a lot of ways to make money by investing in the growth of that country. If this is your first time here, my name’s Peter Leeds. This is where we talk about all this kinda stuff. So, this is it. If you do like it and you want more of this, then you have to show us that by clicking on subscribe. Click on the bell so you get all the alerts when they come out and we’ll keep this kinda stuff coming out for you guys.
Thank you so much..