You may have heard the old Wall Street saying, “Don’t fight the Fed.”
It suggests that investors should align their strategy with the Federal Reserve’s outlook rather than try to outsmart the world’s most powerful banker.
In the past few months, the Fed has said it’s prepared to raise short-term interest rates in 2022. And so far this year, interest rates have been trending higher, which has been one of the factors contributing to the market volatility in the first few trading days.
When creating a portfolio, our professionals consider a wide range of factors, including the Fed’s outlook. The Fed may not always be correct, but we’ve found that understanding its overall strategy can only help when managing money.
Don't Fight the Fed
February 11, 2022