Has It Paid To “Follow” the Fed?
An Excerpt from Conquer the Crash by Robert Prechter
Yes, that’s a provocative question. Think of all the people who would squirm if they had to answer it.
For example, you’d see lots of squirming on Wall Street and in the media. They told stock market investors to trust the central bank in early 2001, by endlessly repeating the phrase “Don’t Fight the Fed!” That was the conventional wisdom then, even though you don’t hear it anymore now. The Fed did not stop the stock market from falling. Investors lost money.
The headline asks a question with “No” as the obvious answer. The notion that you “Don’t fight the Fed” has been a costly myth. Continue reading
