🚨BREAKING: How to Invest Before FED Rate Cut THIS WEEK!
Duration
11:42
Captions
1
Language
EN
Published
Sep 13, 2025
Description
Fed Rate Cut coming and how I'm investing! #fedratecut Also, In this video I’m breaking down how 21Shares is making crypto investing more straightforward with registered digital asset ETPs you can access right from the brokerage accounts you already use. No hype, no gimmicks, just clear, long-term investing insights. 👉 Want to stay ahead of the curve? Subscribe to the 21Shares newsletter for timely market updates and trend breakdowns: https://bit.ly/4lOlXii 👉 Follow @21Shares on YouTube: https://www.youtube.com/@21shares 👉 Follow @21Shares_ on Instagram: https://www.instagram.com/21shares_/ 👉 Follow @21Shares on Linkedin: https://www.linkedin.com/company/21shares-us/ 👉 Follow @21Shares on X: https://x.com/21Shares_US Disclosure: This content is sponsored by 21Shares. This is not financial advice. All investing carries risk, and products may not be available in all jurisdictions. Please consult a licensed financial advisor before making investment decisions. For Private Financial Coaching Zoom Session: ProfessorG.invest@gmail.com *(Portfolio Review, Allocation, Budget Help, Personal Finance, Investing, etc. NOTE: NOT financial advice as I am not a financial advisor) Join the Patreon Group for EXCLUSIVE content: https://www.patreon.com/investingsimplified *Live stock purchases, live Q&A exclusive ZOOM for members only, and a very strong investing community to network with so we can all reach FINANCIAL FREEDOM FASTER! Dividend Masters Course: https://investing-simplified.mykajabi.com/offers/EELd63CV The ONLY Dividends course you’ll ever need! 👉 Investing.com: Subscribe to InvestingPro now https://www.investing-referral.com/investingsimplified/?sub1=youtube 👉 LOWEST price of the YEAR only for you 🔥 Other Videos You'll Enjoy! 💰NEW (Better) 3 ETF Portfolio: How much % by AGE to et VERY RICH: https://youtu.be/WDKUyT1AQrw 💰Ranking BEST S&P 500 Funds: https://youtu.be/ACByf1j3RGY?si=3zf6klDatxpBXCNK 💰Own THIS MANY Stocks and ETFs: Perfect Portfolio: https://youtu.be/6VK8yPwnWNE 💰 Best Order to Invest Your Money in 2025: https://youtu.be/dP4ysL_UBh8 💰If I Started Investing Today (From $0), THIS IS WHAT I'D DO: https://youtu.be/8MpdSH2oFbY 💰SCHD - BEST DIVIDEND ETF: https://youtu.be/yZwhqmzL6R8 💰 SAVE MORE MONEY (better than a budget): https://youtu.be/usU5yKDCRnY 💰5 Best ETFs FOREVER in ROTH IRA: https://youtu.be/fG0HII2KhrQ *All content on my YouTube channel reflects my own opinions and should NOT be taken as legal advice, financial advice or investment advice. DISCLAIMER: Links included in this description might be affiliate links. If you purchase a product or service with the links that I provide I may receive a small commission. There is no additional charge to you! Thank you for supporting my channel so I can continue to provide you with free content each week! *This video is for informational purposes only and is not financial, legal, or investment advice. "Investing Simplified - Professor G" is owned by NGFINCO, LLC. Always do your own research and consult a licensed professional. We are not responsible for any losses or decisions made based on this content.
Captions (1)
Let's not even sugarcoat it. The most
important event for the health of the
stock market is coming next week on
September 17th. I'm going to give you
scenarios of what happens if the rate
does get cut and then also scenarios of
what happens if it doesn't get cut. I'll
also give you details on how I'm
investing leading up to this very
pivotal week. So, some dates to watch
coming up. Obviously, September 16th and
17th with the FOMC or the Federal
Reserve meeting. That's when we're going
to figure out what's going to happen
with this rate cut. But not just that,
what does it look like for the future?
We also just had and then also will have
the ECB governing council monetary
policy meetings and announcements. On
September 18th is also the Bank of
England MPC decision. In summary, the
Bank of England decisions feed into
global rates expectations, especially
for UK or European financial markets,
which is important. Looking ahead to
October, October 3rd is going to be the
US non-farm payrolls. This is very
important for employment. The October
jobs numbers will be watched for whether
momentum is slowing or picking up. A
huge one will be October 15th for US CPI
for September. Then at the end of
October, October 28th and 29th is the
next FOMC meeting. And that's a next
chance after September for the Fed to
adjust rates or signal the future path.
Markets will be anticipating what
happens here. Obviously, if we see not
only a rate cut this September, but also
another rate cut in October, that's
going to be huge for the stock market.
Now, on every one of these Saturday
style videos where I talk about the news
from what happened over the week and
what's going to happen in the near
future, I also answer a question from a
video from before. So, let me go ahead
and answer that question from the
comment section down below of a video
that I did last week and then we'll get
right into the main discussion. Hi,
Professor G. really appreciate your
video and have learned a lot. Thank you.
As I'm worried a dip might be coming,
should I be selling some of my
individual stocks, mainly Google, Tesla,
or tech stocks, and holding my ETFs like
VU and QQQM? This is a great question,
and I picked this because it really has
to do with the topic of what we're
talking about in this video today. If we
believe that there's going to be a rate
cut, there's probably going to be a
substantial increase in the stock
market. But if the rate doesn't get cut,
we're probably going to see a stock
market drop. Alongside with that, a lot
of these stocks have had heavy momentum,
crazy high valuations, and they're at
all-time highs and and crazy amount of
profit from when you probably bought
them. My answer to this would just be to
take a look at your overall portfolio.
Are you overweight in individual stocks?
If so, it's going to make you start
feeling some anxiety because stocks,
individual stocks and more speculative
holdings are going to be the ones that
are much more volatile. That's why I
always tell my clients and I practice
what I preach for myself and I try to
keep it to 80 to 90% of the portfolio in
solid broad ETFs and maybe 10 to 20% in
some stocks. If there's a lot of
volatility in a smaller portion of your
portfolio, it shouldn't mess with the
overall portfolio and should help you
sleep at night better. But to answer
your question, if your stock has made a
bunch of profit and you just feel like
this might be a little bit higher than
probably it should even be at, I've
never heard anybody be very mad about
taking profit and locking in some extra
income. Certain stocks that are very
very overvalued, something like a
Palunteer or something of that nature.
If you take, you know, 20% 30% of your
Palunteer stock and you sell that and
you make that profit, lock it in and
maybe put it into those ETFs that you
feel a little bit more comfortable with,
I see that as a great long-term
strategy. Now, on the flip side, if you
plan on holding these stocks for a very
long time, 5 years, 10 years, 20 years,
it's not really going to make a huge
difference for you to sell it right now.
There might be a dip or a pullback at
some point, but I just think that some
of these stocks will just continue to
keep going higher. I know that Microsoft
is super high. Google is at all-time
highs. A bunch of these stocks are up
there, but for me, the ones that I'm
going to keep for the next 10 years, I'm
okay with riding them up and down and
letting them do their thing. So, I'm not
selling those types of stocks. If though
my portfolio was way out of balance and
I had way too much stock compared to my
ETFs, that's a reason why I would sell
and I would sell the ones that are more
in profit so that I lock those in, throw
those into the three fund portfolio and
just call it a day. Good question. And
for any of you that have a question, go
ahead and leave that down in the comment
section down below and I might choose
yours for next week's video. But for
right now, let's talk about that rate
cut discussion and how to invest. But
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available in all jurisdictions. Consult
a licensed financial adviser. Okay,
here's the most important things that
you need to understand from what's
happened over the last week or so and
what's going to be happening
specifically as it pertains to that rate
cut and how you should be investing.
Inflation data came in mixed but showed
signs of cooling. Consumer and producer
price inflation didn't accelerate as
much as feared. Labor market data is
showing cracks. Jobless claims rose to
highs not seen in several years. Because
of those signals, the market has become
more confident that the Federal Reserve
will begin cutting interest rates soon,
possibly starting at its next meeting in
September. CPI was up, but core
inflation and PPI readings have been
more reassuring. Tariffs remain a wild
card. There's a concern about their
ongoing effect on input costs, supply
chains, and how much of those costs get
passed to consumers. The IMF flagged
that the US economy is starting to show
strain, weaker domestic demand, slowing
job growth, and risks to inflation from
tariffs. Global growth concerns from
Europe, UK, etc. are also feeding into
risk sentiment. For instance, the UK had
stagnant GDP in July and weakening
manufacturing and production. So all of
this leads into what could happen next
week if the rates are cut. The likely
immediate market reactions first in
equities or stocks. The growth in tech
stocks like AI, semiconductors, software
would likely rally the most since lower
rates boost future earnings valuations.
High dividend sectors like utilities,
REITs, telecoms, SCHD may also benefit
since bond yields fall and investors
reach for a yield in equities. Banks and
financials could drop initially because
lower rates compress net interest
margins. They make less money on lending
spreads. Then in bonds, treasury yields
would likely fall further, especially on
the short end, the 2-year. This supports
equities in general, but if yields fall
too fast, it could signal recession
worries, which might cap gains. The US
dollar, it's likely to weaken. that
helps exporters and multinationals, but
could also push commodity prices like
oil and gold higher. And speaking of
commodities, gold typically rallies on
rate cuts. Lower opportunity costs to
hold. Oil could rise if a weaker dollar
and potential demand support outweigh
global slowdown fears. But the rate cut
is not the end of the story. Let's look
at history. If the rate cut is a
midcycle cut, like in the 1990s and
2019, stocks rallied strongly after the
Fed eased while the economy was still
expanding. But recessionary cuts, like
those in 2001, 2007, 2008, stocks
initially bounced, then fell as earnings
and demand collapsed. This is somewhat
my fear right now. A lot of people are
excited about the possibility of cheaper
money and cheaper borrowing costs, and
that should make the stock market go up.
I just don't know how long it's going to
make it go up and if it's going to keep
it up. This is a very tough one to
figure out and so keeping your investing
portfolio balanced is going to be so so
important. Now, almost everyone is
pricing in a rate cut next week. Just
remember that this means that the stock
market has already priced this in. If
you've been looking at the stock market
all week, it's been going up because
people are already thinking this is
what's going to happen. Things are going
to be favorable. If then they do cut and
we get what we're all expecting, I don't
expect the stock market to jump very
much because of that decision. But on
the flip side, if we're totally shocked
and they don't do a rate cut, that could
really actually make the stock market
drop a lot and expect a big dip, at
least momentarily. My gut feeling is
that we will see at least the minimum
0.25 cut next week and that will start a
series of cuts heading into next year.
This will make the stock market go up in
the short term, but I believe this is
going to make inflation go up very much
in the next 5 years. So, how am I
investing this week in anticipation of
that rate cut next week? For the most
part, I'm staying business as usual with
my three fund portfolio and dollar cost
averaging like normal. If I see
something on sale more than normal,
maybe out of fear of some sort, and it's
a stock that I've already analyzed and
that I understand and have researched,
then I'll buy deeper into it. something
like Berkshire Hathaway, which has been
dropping or at least staying stagnant
while other things are going up. And I
still think there's a crazy amount of
value in that stock. If the stock market
drops for some reason next week before
the cut, I'm going to buy the dip just
because I think that's an emotional
response. And if it dips because of the
cut afterwards, I'm also going to buy.
One thing I am starting to buy more of
though is gold. I believe that inflation
will be a huge problem, even more so
than it has been. And I believe the
ddollarization is just beginning. So
both gold and Bitcoin have been larger
dollar cost averages in my investing
lately. I'll have a video on all of this
with data to support it probably in the
next week because the bond market is
actually controlling this and it's
messing with everything and we may see
something worse than a recession. So I'm
compiling all the data and I'm
researching to see what's happened in
the history so that we can figure out
how to make sure and prepare for that
moving forward. So, look out for that
video in the next week or so. I'm also
adding to my portfolio and buying one
ETF that's been doing much better than
anything else and actually does
exceptionally well in a recession or
recessionary periods like we could see
in the very near future. Check out this
video on the new ETF in my portfolio or
watch this one to keep you going strong
in investing. Remember to keep investing
simplified.