Young Research & Publishing Inc.

Investment Research Since 1978

Disclosure

  • About Us
    • Contributors
    • Archives
    • The Final Richard C. Young’s Intelligence Report
    • You’ve Read The Last Issue of Intelligence Report, Now What?
    • Dick Young’s Research Key: Anecdotal Evidence Gathering
    • Crisis at Vanguard
  • Investment Analysis
    • Bonds
    • Currencies and Gold
    • Dividend Investing
    • ETFs & Funds
    • Investment Strategy
    • Retirement Investing
    • Stocks
    • The Efficient Frontier
  • Investment Counsel
  • Dynamic Maximizers®
  • Retirement Compounders®
  • Free Email Signup
  • Dick Young’s Safe America

“Don’t Fight the Fed.” All the Time?

August 28, 2017 By Young Research

Don’t fight the Fed is the mantra of many investors today, but don’t fight the Fed is a dangerous strategy late in an economic cycle.

In January of 2001 the Fed started reducing rates to head off recession. If you had started buying then based on the Fed’s loose policy, you watched the value of your portfolio collapse by 40% over the course of 21 months before the market finally turned in your favor.

The same thing happened in September of 2007 when the Fed decided to cut. If you happily took the signal of the Fed’s cut to indicate a time to buy, you would have been buying through 50% losses, including the rout of Bear Stearns and Lehman Brothers’ disappearance. But don’t fight the Fed!

Don’t ever underestimate the Fed’s ability to distort the market, but rather than basing your investing strategy on a Wall St. adage, using fundamentals is a more prudent approach.

sandp and fed funds target rate

Share this:

  • Email
  • Twitter
  • Facebook

You Might Also Like:

  • Can You Bank on the Fed?
  • This is What Terrorizes the Fed
  • Has the Time Come for Defensive Stocks to Drive the Market?
  • Author
  • Recent Posts
Young Research
Latest posts by Young Research (see all)
  • Happy Martin Luther King Jr. Day! - January 18, 2021
  • Happy New Year! - January 1, 2021
  • Merry Christmas! - December 25, 2020

Search Young Research

Most Popular

  • The Fed is Sacrificing Retirees to Save the Banks
  • Dick Young’s Safe America: Chapter 1, Part I
  • I’ve Been in Richard Young’s Maximizers for Years
  • Vanguard Wellesley (VWINX) vs. Wellington (VWELX): Which Fund is Best?
  • The Power of a Compound Interest Table
  • Whether Through Audacity or Ignorance, Stock Fundamentals Are Being Ignored
  • The Highest Yielding S&P 500 Stocks
  • Smith Family Robinson in Live Free or Die, NH
  • Jim Simons's Renaissance Technologies vs. Internet Forum Traders
  • February RAGE Gauge: Americans Focusing on What's In Front of Them

Don’t Miss

Default Risk Among the Many Concerns with Annuities

Risk and Reward: An Efficient Frontier

How to be a Billionaire: Proven Strategies from the Titans of Wealth

Could this Be the Vanguard GNMA Winning Edge?

Cryptocosm and Life After Google

Warning: Avoid Mutual Fund Year End Distributions

Is Gold a Good Long-term Investment?

How to Invest in Gold

Vanguard Wellington (VWELX): The Original Balanced Fund

What is the Best Gold ETF for Investing and Trading?

Procter & Gamble (PG) Stock: The Only True Dividend King

The Dividend King of the North

You’ll Love This if You’re Dreaming of an Active Retirement Life

RSS The Latest at Richardcyoung.com

  • Absentee Ballots Not Verified
  • SARS-CoV-2: Probability of Outdoor Airborne Transmission Very Low
  • Your Personal Safety: Concealed-Carry How to Carry Your Freedom
  • Mostly Peaceful, Ungovernable Protestors
  • Biden’s Inaugural, the Most Confusing, Contradictory, Incoherent Ever?
  • Is the GOP Over? Not Even Close: Here’s Why
  • Impeaching an Ex-President is Unconstitutional
  • Ten Republican Senators to Get Behind
  • Why Do Government Officials Want To Silence Their Opponents?
  • And 2022 Is Right Around the Corner

About Us

  • About Young Research
  • Archives
  • Contributors

Our Partners

  • Richard C. Young & Co.
  • Richardcyoung.com

Social Media

  • Facebook
  • Twitter
  • Youtube
  • Pinterest

Copyright © 2021 | Terms & Conditions

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.