September 24, 2022 Market Increase, Streaming Services, Real Estate, December 2022, Population, Investing, Home Sales, Rising Interest Rates, Investing, & Increases in Price

Market Increase The Fed continued to spook markets yesterday with the outlook for monetary policy. The 0.75% rate hike to a range of 3% - 3.25% came as no surprise, but the concern came when the outlook for rate hikes going forward was released. The current estimate is a terminal rate or an endpoint of 4.6% next year. Six of the 19 “dots” were in favor of taking rates to a 4.75%-5% range next year, but the central tendency was to 4.6%, which would put rates in the 4.5%-4.75% area. The current expectation is that the Fed will raise rates by at least 1.25% in its two remaining meetings this year and then potentially another 0.25% next year. I do believe at this rate the Fed has gone too far. They completely missed the mark last year and now are completely missing the mark on the other end. If you look at the first photo it is the dot plot from the meeting last September. You will notice not a single member had the Fed Funds Rate toping the 0.75% - 1.0% range and a majority believed the rate would fall between 0% and 0.5%. The second picture is the current dot plot which as you can see is drastically different. I wouldn't give much confidence in the current dot plot given how far off the Fed was at their meeting last September Streaming Services Streaming services are now in a big hurry to add advertisements to their content to help reduce costs for subscribers. In addition to providers like Netflix, Paramount, Disney and Warner Bros. Discovery they will also be competing with Facebook and Google. Supply and demand being what it is, there's a possibility that the high available ad space will decrease the prices for advertising, especially with the slowdown in the economy. Also, don’t forget the traditional advertisements on TV and radio. There’s a term they are using in advertising called Cost Per Mille (CPM). Mille is Latin for thousand and it measures the price of 1,000 advertisement impressions. It is estimated that the CPMs will come in somewhere around $20-$30. HBO Max currently is topping that range over $40