10 & 11. Market Crashes and Bubbles; FED

10. Stock Market Crashes and Market Bubbles

Understand Fear and Greed Cycles

Warren Buffett's opinion on Market Psychology

Accumulating Shares versus Trading Shares

11. What is the FED

What is the FED?

What is the mission of the FED?

1. Maximize employment and stabilize prices
2. Supervise and regulate banks
3. Maintain the stability of the Financial system
4. Service debts for the US. Federal Government

How does the FED change market conditions with interest rates?

High interest rates -> lower people's ability to buy items

What does the FED tell us about Mr. Market?

• When Interest Rates are High = Buy Bonds
• When Interest Rates are High = Buy Stocks