Market hit ALL TIME HIGH. How to invest AFTER Rate Cuts? | Akshat Shrivastava

Summary

In this video, Akshat Srivasta, a full-time investor and hedge fund manager, unpacks the intricacies of interest rate cuts in layman's terms. He explains the impact of rate cuts on borrowing costs, inflation, and asset prices, and how they influence economic growth. Discussing the long-term trends of the US market, he advises on portfolio design and the importance of investing in quality assets. He also touches on the potential for a recession and the strategic importance of hard assets in a post-2008 world of quantitative easing.

Takeaways

• 📉 **Economy and Interest Rates**: The script discusses the impact of Federal Reserve's decisions to cut or raise interest rates, and how these actions influence the economy's liquidity and inflation.
• 💹 **Market Reactions**: It clarifies that while stock markets may not immediately react positively to interest rate cuts, long-term investors should not panic as markets tend to rise over extended periods.
• 🏦 **Understanding Recessions**: The script suggests that recessions are a part of economic cycles, and investors should look for opportunities to buy assets at lower prices during these times.
• 🌐 **Global Market Comparison**: It compares the US and Indian markets, suggesting that the US market might offer better opportunities at certain times due to factors like index valuations and political events.
• 💼 **Investment Strategy**: The speaker shares his personal investment strategy, emphasizing the importance of investing in high-quality assets and managing a diverse portfolio.
• 📈 **Long-Term Growth**: The script highlights the importance of focusing on long-term growth rather than short-term market fluctuations.
• 💰 **Inflation Impact**: It explains how inflation can erode the real value of investments and why it's crucial to consider inflation when evaluating returns.
• 📉 **Quantitative Easing**: The script discusses the concept of quantitative easing and how it has shaped the modern economic landscape, influencing asset aggregation strategies.
• 🏠 **Real Estate Belief**: The speaker expresses a personal belief in investing in real estate as a hard asset to hedge against inflation and economic uncertainty.
• 🚀 **Accelerating Growth**: The script touches on how central banks use interest rate cuts to stimulate economic growth by increasing the money supply and encouraging borrowing and spending.

Q & A

What is the general impact when the Fed cuts interest rates?

When the Fed cuts interest rates, the cost of borrowing decreases, which can lead to lower EMI payments and reduced fixed deposit rates. This action increases liquidity in the economy, potentially stimulating economic activity but also possibly leading to inflation.

Why do interest rates need to be cut or increased?

Interest rates are adjusted to control inflation and stimulate economic growth. When inflation is high, rates are increased to slow down the economy, and when growth is sluggish, rates are cut to boost spending and investment.

How does a low-interest-rate environment affect asset prices?

Low interest rates typically lead to an increase in asset prices such as stocks and gold, as investors seek higher returns in the face of lower returns from traditional savings.

What is the relationship between interest rates and inflation?

Interest rates and inflation are inversely related. High interest rates can help curb inflation by reducing the money supply, while low interest rates can stimulate spending and potentially increase inflation.

Why might the Fed cut interest rates rapidly?

The Fed might cut interest rates rapidly to prevent a recession or to stimulate an economy that is showing signs of weakness. Rapid cuts can increase the money supply quickly, aiming to boost economic activity.

How can investors respond to changing interest rates?

Investors can respond to changing interest rates by adjusting their portfolios, potentially investing more in assets that are expected to perform well in a low-interest-rate environment, such as stocks and real estate.

What is the significance of the S&P 500 chart in the context of interest rate changes?

The S&P 500 chart illustrates the long-term upward trend of the stock market, despite short-term fluctuations due to interest rate changes and economic cycles. It underscores the importance of a long-term investment perspective.

What does the term 'quantitative easing' mean, and how does it affect asset aggregation?

Quantitative easing refers to a monetary policy where central banks purchase financial assets to increase the money supply and encourage lending and investment. It has led to an increase in asset prices and has fundamentally shaped the way wealth is accumulated, favoring those who can acquire hard assets.

Why might the US market perform better than the Indian market in the short term?

The US market might outperform the Indian market in the short term due to factors such as a discounted index, an impending election, and potential policy changes that could stimulate the economy.

What are the potential long-term consequences of continuous interest rate manipulation?

Continuous interest rate manipulation could lead to economic bubbles, where asset prices inflate beyond sustainable levels, eventually leading to a burst and a potential economic downturn.

How should investors manage their portfolios in an environment of fluctuating interest rates and potential inflation?

Investors should manage their portfolios by diversifying across different asset classes, focusing on quality assets, and maintaining a long-term perspective. They should also be prepared to adjust their strategies in response to changing economic conditions and policy actions.

Outlines

00:00

📉 Understanding Interest Rate Cuts and Their Impact

The speaker, Akshat Srivasta, introduces the topic of interest rate cuts and their implications on the economy and investment portfolios. He explains that when the Federal Reserve cuts interest rates, it reduces the cost of borrowing, which can increase liquidity and lead to inflation and higher asset prices. However, this also means that fixed deposits and other interest-bearing instruments may yield less. Akshat emphasizes the importance of understanding macroeconomics to make informed investment decisions, especially in the context of rate cuts. He also highlights his own experience as a full-time investor and hedge fund manager, aiming to educate his audience on these complex financial topics.

05:00

📈 The Market's Reaction to Interest Rate Adjustments

Akshat discusses the historical trend of the S&P 500 index, illustrating that despite short-term fluctuations, the market has generally trended upwards over the long term. He reassures viewers that, for long-term investors, temporary market downturns, such as recessions, should not cause panic. Instead, he advises focusing on quality assets, which are likely to perform well regardless of economic conditions. Akshat also touches on the reasons behind the Fed's decision to adjust interest rates, explaining that rapid cuts are often a response to economic weakness or a need to stimulate growth. He suggests that the current economic climate may be fragile, with politicians and central banks manipulating interest rates to create the illusion of growth.

10:01

🌐 Global Market Insights and Investment Strategies

In this segment, Akshat shares his views on the comparative growth potential of the US and Indian markets, suggesting that the US market might offer better opportunities at present due to its slightly discounted index and the upcoming elections. He provides guidance on how to invest in the US market and emphasizes the importance of diversifying investments across various asset classes, including stocks, real estate, and bonds. Akshat also addresses the broader economic concerns, such as the possibility of economic bubbles and the impact of quantitative easing since 2008. He advocates for a strategic approach to asset aggregation, with a focus on hard assets, and stresses the need for risk management in the current economic environment.

Keywords

💡Interest Rate Cut

An interest rate cut refers to a reduction in the interest rates set by a country's central bank. In the context of the video, the speaker discusses how the Federal Reserve (Fed) in the US has been adjusting interest rates to influence the economy. When interest rates are cut, borrowing costs decrease, which can stimulate economic activity by making loans cheaper and encouraging spending and investment. The video explains that this can lead to increased liquidity in the economy but also potentially to inflation, as seen historically when rates were near 0%.

💡Inflation

Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. In the video, the speaker connects low interest rates to high inflation, explaining that when borrowing is cheap, more money is circulated in the economy, which can drive up prices. The script references the impact of inflation on asset prices, such as gold and stocks, and how it erodes the real value of investments over time.

💡Liquidity

Liquidity in the context of the video refers to the ease with which assets can be converted into cash without affecting their price. When the central bank cuts interest rates, it increases the money supply in the economy, enhancing liquidity. This is because lower borrowing costs encourage lending and spending, leading to more cash circulating in the financial system. The video suggests that increased liquidity can stimulate economic growth but also poses risks such as inflation.

💡Asset Prices

Asset prices are the market values of financial instruments like stocks, bonds, and commodities. The video discusses how interest rate cuts can lead to an increase in asset prices. When interest rates are low, investors seek higher returns, often turning to riskier assets like stocks, which can drive up their prices. The speaker also touches on how inflation can affect the real value of these assets, making the nominal gains less significant.

💡Recession

A recession is a significant decline in economic activity that lasts more than a few months, typically visible in real GDP, income, employment, and industrial production. The script mentions recession in the context of economic downturns and how they can affect market behavior. The speaker reassures viewers that even during recessions, long-term investments in quality assets can yield profits, as seen in the recovery post-2020 recession.

💡Portfolio

A portfolio in finance refers to a collection of financial investments held by an investor. The video emphasizes the importance of designing a well-balanced portfolio to navigate economic changes effectively. The speaker suggests that a diversified portfolio, including quality stocks and other assets, can perform well over the long term, regardless of interest rate fluctuations.

💡Quantitative Easing

Quantitative easing (QE) is a monetary policy in which a central bank purchases government securities or other securities from the market to increase the money supply and encourage lending and investment. The video discusses how QE has fundamentally changed the economic landscape post-2008, leading to an influx of liquidity and affecting asset aggregation. The speaker personally adopts a strategy of accumulating hard assets in response to the ongoing QE policies.

💡Hard Assets

Hard assets are tangible, physical commodities like real estate, precious metals, and agricultural land. The video script suggests that in response to quantitative easing and potential economic instability, investing in hard assets can be a prudent strategy. The speaker shares a personal preference for real estate as a form of hard asset that retains value and provides a hedge against inflation.

💡CAGR (Compound Annual Growth Rate)

CAGR is a measure of the average annual growth rate of an investment over a certain period. It is used in the video to illustrate the need to grow wealth at a rate that outpaces inflation. The speaker implies that a CAGR of at least 12% is necessary to beat segmental inflation, especially in metropolitan areas where the cost of living is higher.

💡Hedge Fund

A hedge fund is an aggressively managed portfolio of investments that use various strategies to earn active returns for investors. In the video, the speaker introduces himself as a full-time investor who runs a hedge fund. This establishes his credibility and provides context for his insights on interest rate cuts and investment strategies.

Highlights

The economy's weakness is a topic of concern, with questions about the long-term effects of rate cuts and market performance.

Akshat Srivasta, a full-time investor and hedge fund manager, shares insights from his YouTube channel.

Interest rate cuts are explained as a means to increase liquidity and money flow in the economy, which can lead to inflation.

The impact of interest rate cuts on EMI payments and fixed deposit rates is discussed.

Asset prices, including gold and stocks, are shown to increase with lower interest rates.

The opposite effect of interest rate increases on money flow and economic growth is highlighted.

Markets do not always go up after interest rate cuts, contrary to common belief.

Long-term investment in quality stocks can yield profits despite market fluctuations.

Recessions are a part of economic cycles, and investing during such times can be profitable in the long run.

The Fed's interest rate decisions are driven by inflation control and economic growth acceleration.

The rapid cutting of interest rates by the Fed indicates a preventive measure against recession.

The global economy's fragility and the role of politicians in shaping economic perceptions are discussed.

The stock market is influenced by asset prices, which can rise with increased money supply.

Inflation's impact on the real growth of investments is explained, emphasizing the need to beat inflation through smart investing.

The potential for an impending recession is debated, with a focus on strategic asset acquisition.

Opportunities in the US market are compared to the Indian market, with a current preference for the US market due to discounts and upcoming elections.

The concept of quantitative easing and its impact on asset aggregation is explored, with a personal inclination towards hard assets.

The importance of managing risk and learning investment strategies in the current economic climate is emphasized.

Transcripts

Is the economy weak?

What happens in the long term if the rates are cut?

Will the US market do better than the Indian market?

So what I will do is that I will explain the entire topic in very

layman terms in a Q&A format.

So I'll just try to answer 10 most important questions around the rate cuts.

It will give you more clarity.

It will give you a better understanding of macroeconomics, and hopefully, you'll be

able to design your portfolio as well.

Now, in case you're new to my channel, my name is Akshat Srivasta.

I'm a full-time investor now. I run my hedge fund.

Whatever learnings I'm getting, by managing a fairly large portfolio size, I

try to bring it to your knowledge through my YouTube channel.

On that note, let's start the video in 10 points.

The first key point is that what is the impact, generally speaking, when the Fed

cuts rate, and what is the meaning of cutting interest rate?

What's the need to do it?

For this, let me take you to the interest rates in the US.

What you will notice is that starting 2022, the feds had started to raise the

interest rate from approximately 0%, and now they are bringing it down.

This was 5.

5%, this is where the rates And then it is being made to cut.

So what's like cutting interest rate and not getting interest rate?

What's the story there? I've done an entire video here.

You can go and watch it, but I'll give you a very quick download on this.

So basically, when interest rates are cut or they are brought down, what happens

is that the cost of borrowing goes down.

For example, your EMI payments will become less or are supposed to become less.

Your FD rates will also come down, etc.

So basically, what this does is that this increases the liquidity or the

total money flow in the economy.

So this What happens when interest rates are cut?

This also brings another problem called as inflation.

For example, if the interest rate is way too low, it's close to, let's say, 0%, the

way it was here, what were we witnessing for the last two, three years?

Well, it was very high inflation.

This is the meaning of interest rate cut, that whenever interest rates are typically

cut, there is more money that flows through the economy, and this

typically leads to inflation. This is what has been generally seen.

This also leads to increase in asset prices, increase in gold prices,

stock prices, this, that stuff. That's a very broad understanding.

Now, opposite happens when interest rates are increased.

For example, in this phase, the interest rate was increased.

Up until very recently, the interest rates were increasing.

Basically, the flow of the money through the economy is not pushed very fast.

This is the meaning of interest rate cut.

Now comes the second question that, hey, what happens when the Fed

cuts the interest rate? Will the markets always go up?

Let me show you a very broad macro picture here.

What you will notice is that this is S&P 500 chart.

You can.

The market, this blue line, it keeps on going up on a long term basis.

This is a very important point for you to consider that we don't have a vision of

more than five days in the stock market. So problem is.

But if you have a long term vision, you don't need to panic.

If you are a long term investor and if you have picked high quality stocks, then

your portfolio is likely to do well.

If you do not pick good quality assets, good quality real estate, good quality.

But the bottom line, the first key message that I wanted to give from this chart is

that see, long term, there is no issue there.

Second key point, that if you actually zoom in on this chart,

there is a lot of talks,.

For example, this gray area is called as a recession.

This indicates on this chart a recession. For example, 2020, we had a recession.

But if you would have invested your money in 2020, would you have been sitting

on very good profits right now? Yes.

The short answer is yes. Hi, everyone.

Welcome to today's video.

On today's video, I'm going to help you understand the entire

story behind rate cuts.

There are a lot of questions that are coming up that, Hey, will the stock

markets fall or is the economy weak?

What happens in the long term if the rates are cut?

Will the US market do better than the Indian market?

What I will do is that I will explain the entire topic in very layman

terms in a Q&A format.

I'll just try to answer 10 most important questions decisions around the rate cuts.

It will give you more clarity.

It will give you a better understanding of macroeconomics, and hopefully, you'll be

able to design your portfolio as well.

Now, in case you're new to my channel, my name is Akshat Srivasta.

I'm a full-time investor now. I run my hedge fund.

Whatever learnings I'm getting by managing a fairly large portfolio size, I try to

bring it to your knowledge through my YouTube channel.

On that note, let's start the video in 10 points.

The first key point is that what is the impact, generally speaking, when the Fed

cuts rate, and what is the meaning of cutting interest rate?

What's are need to do it.

For this, let me take you to the interest rates in the US.

What you will notice is that starting 2022, the feds had started to raise the

interest rate from approximately 0%, and now they are bringing it down.

This was 5.

5%, this is where the rates be, and then it is being made to cut.

What's like cutting interest rate and not getting interest rate?

What's the story there?

I've done an entire video here, you can go and watch it, but I'll give you

a very quick download on this.

Basically, when interest rates are cut or they are brought down, What happens is

that the cost of borrowing goes down.

For example, your EMI payments will become less or are supposed to become less.

Your FD rates will also come down, et cetera.

Basically, what this does is that this increases the liquidity or the

total money flow in the economy.

This happens when interest rates are cut.

This also brings another problem called as inflation.

For example, if the interest rate is way too low, it's close to, let's say, 0%, the

way it was here, what were we witnessing for the last two, three years?

Well, it was very high inflation.

This is the meaning of, that whenever interest rates are typically

cut, there is more money that flows through the economy.

This typically leads to inflation.

This is what has been generally seen.

This also leads to increase in asset prices, like increase in gold prices,

stock prices, this, that stuff.

That's a very broad understanding.

Now, opposite happens when interest rates are increased.

For example, in this phase, the interest rate was increased.

Up until very recently, the interest rates were increasing.

Basically, the flow of the money through the economy is not pushed very First.

This is the meaning of interest rate cut.

Now comes the second question that, hey, what happens when the Fed

cuts the interest rate? Will the markets always go up?

Let me show you a very broad macro picture here.

What you will notice is that this is S&P 500 chart.

You can see interest rate increase or cut, the market, this blue line, it keeps

on going up on a long term basis.

This is a very important point for you to consider that we don't have a vision of

more than five days in the stock market.

Problem.

But if you have a long term vision, you don't need to panic..

If you are a long term investor and if you have picked high quality stocks,

then your portfolio is likely to do well.

If you do not pick good quality assets, good quality real estate, good quality

bonds, then of course you will suffer.

But the bottom line, the first key message that I wanted to give from this chart is

that see, long term, there is no issue there.

Second key point, that if you actually zoom in on this chart,

there is a lot of talks.

For example, this gray.

This indicates on this chart a recession.

For example, 2020, we had a recession.

But if you would have invested your money in 2020, would you have been sitting

on very good profits right now? Yes.

The short answer is yes.

So do not get scared of words like recession, all that stuff.

This is a very important point.

Next point that I want to explain through this chart is.

It's not as

you're holding high quality asset, in the

long term, they are going to do fairly well.

Then comes the next point. They are cutting the interest rate.

So stock market.

So then comes the next point, you have to move around the interest rate, you have to

bring it down, then you have to bring it up.

All this nonsense, why do it?

Why make so much news on it?

See, basically what was happening in the last two, three years was that the

inflation or the price increase was very, very fast.

For For example, you would have seen your rents going up like crazy, your kids'

school fee going up like crazy, medical inflation in India was

14%, 1,4% per year, etc.

There was a lot of mehngai.

Now, this in simple terms is called as inflation.

Now, if the interest rates are kept very, very low, then people are borrowing

like crazy and spending money.

So they will continue to borrow, pump in more money through the economy, and that

will keep on raising or jacking up the prices at a very fast rate.

Rate.

Please notice this last word at a very fast rate.

Therefore, the Fed had to increase the interest rate.

Right now, what people miss in terms of analyzing macroeconomics is that we are

designed to keep the interest rate low or possibly as low as we can because we are a

growth-driven world, growth at any cost type of a world.

So please do not get scared.

Even if the economy collapses, then they will cut the interest rate to literally, I

don't know, 1% and try to reinstate the growth.

But just to quickly answer that why do we have to go through this drama?

The short answer there is that see, sometimes the inflation goes up really

fast, and in those circumstances, they have to keep the rates up high.

Now, recently, the data started coming in that inflation is cooling off.

Inflation will control me.

Therefore, they are now cutting the interest rate so that they can accelerate

the flow of money through the economy, and as a result, they will be

able to drive more growth.

That's a simple point.

I hope that this point was understood.

Now comes the next question..

But this part, it's the noise.

Why are you making so much noise? At 0.

5 basis point, cut of interest.

Now for this, you need to take a look at this chart.

For example, you will see this was 2. 5, then it was 2.

25, then it was 2.

Whenever interest, the interest rates are typically cut, then they

typically get cut by 0. 25%.

But this time, the Fed has actually cut the interest rate really fast.

Now, what is the difference between cutting the interest rate

really fast and really slow?

See, if the Fed is cutting interest rate very fast, they are trying

to prevent a recession..

Recession.

Global economy is not moving.

People are not spending money, private consumption is drying

up, this, that stuff.

Okay, fine. So Fed will say, Okay, fine.

I'll cut the interest rate fast.

Here is free money. Take it.

They will move the velocity of money really fast in the economy, and then they

will try to just literally create a lot of fake growth.

And that is honestly that is happening.

So this is a very important fundamental point to consider that even the Fed

inherently believes that the economy is weak.

And in order to accelerate it now, they have to cut the interest

rate really, really fast.

A counterpoint here is that see, this year there is US election and US politicians.

So maybe That is another possibility.

But my macro thesis is leaning towards one, that our economy is actually weak.

The entire world economy is actually very fragile.

It's not growing at a very fast growth rate.

So politicians need to create that illusion of growth, so to say.

So they will try to move around the interest rate really fast in

order to accelerate the growth.

So this is precisely what is happening.

So then comes the next point that, how will this all game

impact the stock market?

Well, the stock market will go up. Why?

Because the stock market is an asset-price game.

From 1976 to now, the stock market or this blue line has gone up like crazy.

But what people don't tell you or the context they don't set is that see, during

this time, the inflation also went up.

So inflation means, you had invested here, now this has become 1,000.

But is this really like 100X growth?

The short answer is no.

Why is this not a 100X growth?

Because of this enemy called as inflation.

The real buying power of this 1,000 is what?

If you go back to 1976, it would be a lot less.

So you can see it as 1,000, maybe it will be like 300.

That's the actual growth we are looking at.

So it's not 100X, it's possibly like 30X adjusted for inflation.

So the question is wrong that a stock market, will it go up or not?

Yes, stock market will, of course, go up, but so will be inflation.

Which brings us to the next point that, hey, what is the game ahead?

How will this Fed interest rate cut actually impact the market?

I had already explained it on multiple videos.

I will belabor this point and explain it to you again.

But see, basically, unless you're growing your wealth in the stock market at 15%

CAGR or at least 12% up, you're not beating segmental inflation for you.

Segmental inflation, for example, the average Inflation in India might be 5%,

but if you're living in a Metro, Delhi, Mumbai, this, that stuff, sending your

kids to private school, all that stuff, then actually inflation over 10%.

You have to actually beat the real inflation by investing

in high-risk assets.

That's the world we are living in, unfortunately, and you need to do that.

Then comes the next point that, Hey, is an impending recession there?

See, this is a theoretical academic debate.

This has got nothing to do with the stock market per se.

Recession,, 2020 maybe there were Russia-Ukraine war.

There was slowing down of the growth.

Recession will always come.

But what you need to do is that you just need to figure out a way to buy stocks

cheap or buy assets cheap and hold them when they are fairly valued.

Though, that's a separate thing.

But in general, we are in a market where you need to aggregate assets really fast

at the best possible discounts that you are getting.

Now, this could be gold, this could be real estate, this could be stocks,

this could be bonds, anything.

So in case you guys are interested in learning about all this, I

do run structured courses.

In case you are interested in learning everything, macro-driven,

fundamentally-driven, actual practical experiences of me investing my money

across the globe, I will help you through that entire process.

So you could consider checking out the links.

So Okay, so the next point that, hey, will the Indian market grow faster

from this point or the US market?

I feel that better opportunities right now are there in the US market compared to

Indian market because their index is slightly discounted compared to India

right now and they have an impending election.

So in the short term, I feel that US market is better.

Now, how do you invest in the US market?

Again, all those points I help you through.

So again, do check out the links in the description and comment box.

But in case you're just simply looking to invest some money in the US at this

juncture, you can definitely consider doing that.

This is not the wrong time.

This is actually a good time to invest money in the US market.

Okay, so then comes the final question that, okay, fine.

I get the point that, you know what?

Inflation control, they will increase the interest rate.

Then when inflation is in control, then they will cut the interest

rate, accelerate growth. But can this always be done?

Or will the economy actually bubble up so much and it will burst?

Like 2000 bubble, Harshad Mehta scam bubble, and all these

2008 bubble, or 2020 bubble, all that stuff.

I think a great case study is after 2008.

Actually, if you speak with slightly more seasoned investors who are investing like

'80s, '90s, all that stuff, they have a very different perspective and

a major macro change has happened, which is called as quantitative easing.

So this entire game of money printing and introducing too much liquidity in the

market, this actually started happening after 2008.

In fact, the Fed chair during that time, Ben Banaki, he was given Nobel Prize in

economics for this entire game, of printing money,

I am

personally aggregating a lot of assets,

whatever hard assets I can get my hand on.

I am purchasing real estate.

I'm a believer in real estate also.

Yes, I grow my wealth in the stock market, I'm not saying that it's pointless, but

quantitative easing, QE, it has fundamentally shaped the way

the asset is being aggregated. Now,.

But whatever profits I'm making, I have a sensible allocation to hard assets also.

I feel that this is going to be critical going forward.

This is not a point that many people are understanding.

Again, this is not a recommendation,.

No.

Whatever assets you are buying, be it stocks, be it real estate,

you have to buy quality. How No, don't judge that.

All that stuff is a question for further discussion.

But I hope that this quick topic on interest rate cuts gave you

clarity on where we are heading.

Finally, just to conclude, I feel that this game is not changing anytime soon, at

least for the next 10 years., whatever we have seen after 2008.

The way this will bubble up and die is very simple, that you will start

witnessing very high inflation and very high asset returns.

For example, you might be making 15% CAGR from the stock market, but inflation

also will be close to 12, 13%.

Now, this is a game where we are heading towards.

Therefore, it's very important to learn how to manage your risk

systematically and properly.

Thank you so much for watching this video, and I'll see you soon.