what do you think? what is your opinion?

-How do you think interest rates affect the economy and markets?

Interest rates affect the market based on consumer purchasing power. Lower interest rates may lead to more money being poured back into the economy. For example, when mortgage rates are low, people may be more likely to buy homes. When mortgage rates are low, may also be expected that the housing market with appreciate. Likewise, when auto loans interest rates are low, more people may be inclined to purchase vehicles. The more people take from the banks, the more people will purchase. As Meriem mentioned above, there is a direct inverse relation between interest rates and stock.

When rates are high, stock is low (less purchasing). When rates are low, stock is high (more purchasing).

-Where do you think interest rates are headed and why? Is this good or bad?

In recent months the S&P has been on a relative decline. With this statement holding true, I would suspect rates will continue to increase. Especially because we just came out of all-time low mortgage rates; I personal recall hearing 3.5% within the last year! -Do you think markets are currently undervalued, overvalued, or fairly valued? How about certain asset classes?

I believe markets were overvalued and we are starting the see the affects of a leveling off. Most recently we have seen a real push towards the real estate market. At this point it have crossed over into an overvalue with a 16.5 price-earnings ratio (P/E). An undervalued sector of the market would be the industrial sector with a 13.6 P/E. I believe the devaluation was due to its sudden decline in 2019 Q4, falling from 17.3 in Q3 to 13.3 in Q4. I believe we still it steadily increase once again, as history always repeats itself. -How does taxation and inflation work against your objective of wealth building?

Simply: taxation works again wealth building, as not only does it take your hard earned coin, but it takes MORE the more financially affluent you become. Sometimes its better to hover around to the top of one bracket than it is to cross over. If you will only receive a slight increase in pay to bump you into the next bracket, it may be better to reject the raise in pay because you could actually end up with less money than you would have had you stayed in your first bracket.

Inflation works against wealth building because the dollar you earn today is worth less tomorrow. That is why investing your money is so important. Earning a percentage yield on your dollar helps work against the disadvantages of inflation.

-Are there ways you can "defeat" the effects of inflation and taxation?

Yes, a way to defeat inflation is to invest in something with a higher return than the rate of inflation. A strategy to defeat taxation is become charitable and be thoughtful when completing an I-9.