🔴Impact of Mortgage Rates: Carry Trade
If I wanted to change houses, it wouldn't be convenient for me because my interest rate would double, but they are 245 for 180 points, after that we are talking about 4 or 3 more or less mortgage rates since it is still clear but it is no longer the 5 of 2 months ago. I have not quoted with my bank so as to know how the rates are but but it is a quick number from BCU of 20 years plus 180 expert points so I had an idea Perfect perfect Important point to look at how the rates are there because that greatly affects the long-term rate Because in the end they asked me the other day that it is not very economics but what does the United States have to do with if the Central Bank lowers it to 0, should the rates lower here? Why haven't the mortgage rates lowered and they lowered them? Imagine you are an investor and you say, hey, the rate in Chile is at 4 percent? And the rate in the United States is at 4 percent 100 Where do I go? Where do you put your money? What risk do you prefer? Chile or the United States? Not Chile's? Yeah. So if you lower the rate in the United States, Chile becomes more attractive to you. And the money comes here and you buy Chilean rates. And so on. The carry trade. The famous carry trade, which is what keeps the dollar high. Well, now it was going down a little bit, but. But of course, every day new news comes out that goes one way and the other. This issue has been the last 5 years have been a complete black swan. Yes, they have been atrocious. I want to go back to the boredom of 2019. It's up to September 2019. Yes, how to turn everything back. Of course, of course. That's why they say it's long-term. It's key, it's key. Yes, of course, what happens is that today it's more difficult to look long-term because you don't know what's going to happen. Suddenly, news comes, no, okay, in Brazil there's a virus that a pandemic is going to come again, no. It's true. But in this text, we should be thinking long-term. Now we're all long-termists until the negative news comes out. Because The one who said he was long-term went out selling anyway. Well, that was an interesting article I read the other day about rates in Chile and the United States and the Central Bank. This analyst was surprised that they had a long-term view. They talk about the long term, but suddenly, one month there's high inflation, and they stop it, saying that today's rate will affect two more years. Why do they jump with one month's inflation?
The stock market is a market where financial assets, such as stocks, bonds, and other instruments, are bought and sold. Shares represent partial ownership of a company and are issued to raise capital. When you buy shares, you become a shareholder and are entitled to a share of the company's profits and decisions.
Dividends are periodic payments that some companies make to their shareholders as part of their earnings. These payments are often a way to reward investors for their involvement in the company and can be a source of passive income.
Financial freedom is a state in which a person has accumulated sufficient financial resources and assets to cover their expenses and enjoy a desired lifestyle without having to rely exclusively on traditional employment. It involves having sufficient passive income to maintain their quality of life.
The FIRE (Financial Independence, Retire Early) movement is a financial philosophy that seeks to achieve financial freedom and retire early. It is based on living frugally, saving, and investing wisely to accumulate sufficient wealth and generate passive income that allows them to retire earlier than their traditional retirement age.
Passive income is income generated without you having to be actively involved in an activity. It can come from investments, rents, royalties, dividends, interest, among others. The idea is for this income to flow steadily without requiring your constant time and effort, which contributes to your financial freedom and can be a key goal in the FIRE movement.
In short, the stock market is a market where shares are traded, representing ownership in companies and generating dividends as passive income. Financial freedom and the FIRE movement seek to achieve financial independence through the accumulation of passive income, enabling early retirement and a more financially free life.