• Skip to main content
  • Skip to primary sidebar

Cade Hildreth

Everything You SHOULD'VE Been Taught in School.

MENUMENU
  • Blog
  • Finance
    • Cryptocurrency
    • Real Estate
    • Gold and Silver
    • Investing
    • Increasing Income
    • Financial Q&A
  • Real Estate
  • Health
    • Fitness
    • Nutrition
    • Confidence
  • LGBTQ+
  • Podcast
    • "What You Should've Been Taught"
    • Audio Feed of the Website
    • Ask a Podcast Question
  • About
    • Testimonials
    • About Cade
    • Rugby Bio
    • Instagram
    • Contact
You are here: Home / Finance / Will Interest Rates Go Down in 2020? COVID Forecasts and Trends.
Will Interest Rates Go Down in 2020? COVID Forecasts and Trends.

Will Interest Rates Go Down in 2020? COVID Forecasts and Trends.

May 19, 2020 By Cade Hildreth Leave a Comment

The Coronavirus has hit the economy hard, with U.S. unemployment claims surging to levels beyond those of the Great Depression. As of May 2020, unemployment claims in the U.S. have surpassed 36 million. With an estimated 157 million Americans composing the U.S. workforce, that number represents close to a quarter of workers (22.9%).

That is a shocking, frightening statistic. 

Given these dire circumstances, the question becomes, will interest rates go down in 2020? More importantly, how would you benefit if they do?

Will Interest Rates Go Down During COVID-19?

Interest rates, set in the U.S. by a group called the Federal Open Market Committee (FOMC), are near historic lows, but there is some limited room for them to go lower.

While no one can predict the future, I believe that interest rates are likely to move lower over the next 18-24 months.

This is because our nation—and the world—have a super deflationary event (the pandemic) that has hit the economy with a sledge hammer. Lockdowns have affected more than a third of the planet’s population and unemployment claims are have surged to all-time highs.

While interest rates are likely to stay low and potentially trend lower for two years or so, my hunch is that in three to four years—around 2023 to 2024—the economy will start to stabilize.

Beyond mid-2024 (around four years out), I think there is a reasonable risk of inflation starting to run at a damagingly high of rate—say above 3.5%.

If inflation kicks up like I’m speculating above, we will likely have stagflation. Stagflation is high inflation coupled with low growth in the economy.

Perhaps, we could even start to move into a high inflation environment, which is dangerous and beyond the Fed and government’s ability to deal very well.

Hedging with Gold and Silver

Because of this economic risk, it may make some sense for you to hold physical gold and silver as a hedge against dire times.

Through all cultures and all periods in history, these two widely collected and traded precious metals have acted as monetary instruments—a type of universal money. While gold and silver do fluctuate in price, this is (at least in part) a perceived fluctuation driven by the fluctuating value of reference points—for example, fiat (paper) currencies like the U.S. dollar.

More importantly, as hard assets, gold and silver will always maintain some degree of value and can act as an medium of exchange in any country worldwide—regardless of economic conditions. 

3 Types of Money

Furthermore, precious metals such as gold and silver are one of only three types of money.

Most people don’t know that all financial systems worldwide are run on only three types of money. It’s really that simple.

The three types of money that run the entire global economy are:

  1. Fiat Currencies – These are paper currencies created by government decree (for example, the U.S. dollar, the Euro, or Japanese Yen).
  2. Gold/Silver – These are best known and most widely traded precious metals. In addition to their practical uses, they function as investments and act as a store of value.
  3. Cryptocurrency – These are digital or virtual currencies designed to work as a medium of exchange.

To be clear, by money I mean “units of storage” for your wealth.

You can store your wealth in the form of fiat currencies, gold/silver, or cryptocurrencies.

To grow your wealth, you can exchange any of three types money for paper assets or hard assets. Paper assets are representations of something, while hard assets are physical assets with intrinsic value.

Paper Assets vs. Hard Assets

While most people tend to prefer hard assets during recessionary periods, I prefer hard assets during all economic cycles. The reason for this is that the U.S. dollar was taken off the gold standard in 1971 by President Richard Nixon.

Since that time, our money has not had any real value—it is just cotton and linen.

The only value that our dollar has is that which the U.S. government states it has and that which we, the people, believe it to have. Also, no fiat currency has survived in all of history. So, you know, that’s concerning.

Fiat Money = Any paper money created by government decree.

How Will Low Interest Rates Benefit You?

As described, financial indicators suggest that interest rates will stay low for the next couple years, and I would suspect they could trend down some too.

When individuals pay less in interest over time, they have more money to spend, which in theory at least, can create a “ripple effect” of increased spending throughout the economy.

Practically speaking, this means that you will be well-positioned to achieve historically low interest rates on: 

  • Auto loans 
  • Refinanced auto loans
  • Home mortgages
  • Refinanced mortages
  • Refinanced student loan debt from private lenders
  • Home equity lines of credit (HELOCs)
  • Personal loans
  • Commercial loans

Additionally, while it will not impact your fixed rate mortgage (unless you refinance), falling interest rates will help you if you have an adjustable-rate mortgage (ARM).

Of course, don’t go acquiring things just because it’s cheap to borrow money.

After all, the key to all financial wealth is to acquire assets (things that put money into your pocket) and limit liability (things that take money out of your pocket).

Up Next: Coronavirus and Cars: Is Now a Good Time to Buy a Car?

Are we connected yet on social media? If not, let’s make it happen: Instagram | Twitter | Facebook | Pinterest

5/5 - (4 votes)

Share this:

  • Click to share on Twitter (Opens in new window)
  • Click to share on Facebook (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)

Filed Under: Finance

Reader Interactions

Tell Us What You Think! Cancel reply

Primary Sidebar

  • Instagram
  • Twitter
  • Facebook
  • LinkedIn
  • Pinterest
  • TikTok

“As an LGBTQ+ entrepreneur, real estate investor, former USA Rugby Player, and fitness fanatic, I’ll teach you what your parents and teachers should’ve taught you, but didn’t know themselves.” -Cade Hildreth

Want to know what I learned making my first few million? Subscribe here.

Or, listen to Cade’s articles on the go as a Podcast.

Because it’s the New Year, let’s talk about ch Because it’s the New Year, let’s talk about change...

For a long time, I’ve thought about top surgery. I remember when I was 6 or 7 years old when I wanted to run around outside on a hot, sunny day with my shirt off…and I first saw my parents… hesitate. Ughh. 

It wasn’t their fault but I still remember that heart wrenching feeling. To their credit, they ultimately said, “Ok, go do it!” While I did “do it”, I remember the feeling of shame that crept in.

Over the years, being in affirming sporting/rugby circles helped suppress the urge to get top surgery, but it never quite “stayed down.”

So last summer I got keyhole #topsurgery. I’ll talk about recovery in another post because it was definitely weird to not strength train for months.

But in THIS post, I want to share two things:

1. I am SO grateful to my wife Erin for being the supportive and growth oriented partner that she is. 🥰🙏❤️ 

She is now following her call to get a divinity degree and she’s already working in ministry as a Pastor in Training at an incredible, inclusive Presbyterian church here in Virginia. I am grateful to her for supporting me as I become more and more of who I am—and I’m enjoying watching her do the same! Love you, babe!

2. Second, I’m grateful to get to share who I am with my family. This summer we took a trip to Madden’s resort in MN to celebrate my parent’s 50th wedding anniversary. (It was actually their 52nd, because we had to postpone it twice due to Covid.)

I was nervous to be in the pools and lakes around them, but I could feel it was my only choice because I knew I wanted them to “know me”. And, how could that happen if I “hid me”?

Ultimately, I have to tell you…it was freeing to be me, as I am, who I am. 

I had the BEST time splashing around and biking and goofing around with my wife, niece, nephew, & sister. 🌊🏖🐟

So, I suppose, this is a gratitude post to thank those who have supported me over the years as I become more and more of who I am. 

Top of that list is my wife, Erin, but there are countless others. ❤️

If you’re reading this, thank YOU for being one of those people in my life too. I am deeply grateful. 🥹
.
.
#lgbtqfamily #nonbinary
How to set a boundary? 🤔 . . . . #lgbtqia #lgb How to set a boundary? 🤔 
.
.
.
.
#lgbtqia #lgbtqcommunity #emotionalhealth
What do you do if you’re telling a past story ab What do you do if you’re telling a past story about someone who has transitioned? 🤔 Share a 💯 if you agree ➡️🏳️‍⚧️🏳️‍🌈
7 things I got clarity on in 2022: 1. Good and b 7 things I got clarity on in 2022: 

1. Good and bad are labels. All things are experiences. 

2. Maturity is taking full responsibility for oneself. 

3. Having a loving, conscious relationship with myself is a core value. 

4. Emotions do not mean that anything has to be done. 

5. When I am in congruence with what I want, I have it. 

6. I have permission from myself to stop doing anything that doesn’t lead to my peace and empowerment. 

7. Stepping toward emotions and being able to feel them is a superpower. It determines the quality of my life. 

(Are there any above that you’d like me to further explain?)
 
Most importantly, which # above resonates with you? ⬆️

Happy New Year, y’all! 🎊🥳
.
.
.
.

#lgbtqcommunity #lgbtqiaplus #lgbtsupport #nonbinary #trans #selfgrowth
Interview with Jenny Nguyen, Founder of the Sports Interview with Jenny Nguyen, Founder of the Sports Bra—The World's 1st Bar to Only Play Women's Sports - shorturl.at/doGHZ

I'm excited to introduce you to today's #podcast guest, Jenny Nguyen, who is a professional chef, elite athlete, and entrepreneur.

I invited Jenny onto the podcast because she has done something extraordinary that is long overdue: She has opened up a sports bar that exclusively plays women's sports!

Despite extensive research, Jenny hasn't found another sports bar worldwide that ONLY plays women’s sports.

Given that it's nearly 2023, this is mind-blowing. As a lifelong athlete, I find her vision compelling and inspiring.

Aptly called the "The Sports Bra", the venue is putting Jenny's culinary skills on display alongside women's sports worldwide.

The Sports Bar has taken its mission a even further by partnering with and elevating other local, women-owned businesses.

Specifically, it:

1. Sources its grass-fed beef from @CarmanRanch, an ranch run by Cory Carman, a third gen rancher out of Wallowa, Oregon).

2. Sources its alcohol from Freeland Spirits, an all-women owned and operated distillery out of NW Portland.

3. Has furniture built by @girlsbuild_org, a non-profit organization headed by @ktmhughes in Portland, OR, that teaches carpentry and construction skills to young girls as a path to empowerment.

Since opening the Sports Bra this April, people have come from ALL over the U.S. and the world to experience it—including many professional female athletes.

To learn more about Jenny as she makes history, features women's sports, and elevates women-run businesses, listen to the episode here:

shorturl.at/doGHZ

Or, you can check out the Sports Bra at:

@thesportsbrapdx
TheSportsBraPDX.com/

Have you heard of the Sports Bra or been out to experience it in person?

#lgbtqiaplus #womenownedbusiness #lgbgtqia #lgbtqcommunity #womenssports #womeninsport
Over this recent holiday stretch, we… - enjoye Over this recent holiday stretch, we… 

- enjoyed some quiet time at home
- got a sauna delivered (but not yet installed)
- decorated for the holidays
- baked a bunch
- visited our favorite farm
- did some sight seeing
- and perhaps, most importantly, survived the cold snap along with our feather friends (who lived in the garage for a few days so we could heat them with a space heater) 🥶🐔

How have the holidays treated you…and did you get hit by the winter storms? ❤️🎁☃️❄️
Load More... Follow on Instagram

Recent Posts

Gender Spectrum

The Gender Spectrum: A Scientist Explains Why Gender Isn’t Binary

Laith Ashley

Transgender Model Laith Ashley: 11 Fascinating Facts

Real Estate Syndicators

Master List of Real Estate Syndicators for 2023

Pride Flags

Beyond the Rainbow: Your Ultimate Guide to Pride Flags

Nonbinary

What is Nonbinary Gender? On Being Both, Beyond, and In-Between

Categories

  • Biohacking
  • Confidence
  • Cryptocurrency
  • Entrepreneurship
  • Exclude
  • Finance
  • Fitness
  • Gold and Silver
  • Increasing Income
  • Investing
  • LGBTQ+
  • Nutrition
  • Podcast
  • Real Estate

Ask a Podcast Question | Contact Us | Terms of Use | Privacy Policy

COPYRIGHT © 2019 · CADEHILDRETH.COM | PHONE: ‪(202) 660-4705‬  | 800 CORPORATE DRIVE, SUITE 301, STAFFORD, VA 22554, USA

 

*Disclaimer: Nothing on this site should be construed as medical, health, or financial advice. Before making any health decisions, you should consult with your doctor. Before making any financial decisions, you should consult with professional adviser, such as a financial planner or CPA.