Click here to get a PDF of this post

This is a Guest Post Vlog by AK of Fallible
AK has been an analyst at long/short equity investment firms, global macro funds, and corporate economics departments. He co-founded Macro Ops and is the host of Fallible.

How does the Federal Reserve manipulate financial markets and your money?

They do it by controlling risk premium spreads…

The goal of investing is to split your money between different assets to diversify your risk and give you a decent return.

But when the Fed shifts interest rates, they end up screwing up the risk premium all these assets provide.

This in turn forces people to move their investments into riskier and riskier assets.

Learn all about the way the Fed is carrying out the manipulation in the video above!

And make sure to subscribe to the Fallible channel here for more videos!