“Don’t fight the Fed” has become an accepted Wall Street adage. It’s a phrase coined by Martin Zweig, a legendary technical analyst, and investor who predicted the 1987 market crash to the day and was the author of the 1970 investment classic Winning On Wall Street. Zweig wrote that “The monetary climate – primarily the trend in interest rates and Federal Reserve policy – is the dominant factor in determining the stock market’s major direction.”
Fast forward 50 years and “Don’t fight the Fed” is very much alive. This week’s guest has been following that dictum during his 40-year investment career. He says we are in the midst of a Fed-induced market melt-up right now.
He is Ed Yardeni, a respected Ph.D. economist, strategist, and Fed watcher who leads Yardeni Research, a global investment strategy firm he founded in 2007. A prolific writer, publishing a detailed daily Morning Briefing and comprehensive What I am Reading list, he is also the author of a new book, Fed Watching for Fun and Profit: A Primer for Investors.
He’ll discuss why the Fed has become even more important in predicting the markets and what its current policies mean for investors.
WEALTHTRACK Episode #1714; Originally Broadcast on October 02, 2020
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[tabcontainer] [tabtext]Guest Info[/tabtext] [tabtext]Action Point[/tabtext] [tabtext]Bookshelf[/tabtext] [tabtext]One Investment[/tabtext] [tabtext]Stock Mentions[/tabtext] [tabtext]Video Archive[/tabtext] [tabtext]Web Extra[/tabtext] [/tabcontainer]
- Fed Watching for Fun and Profit
READ ED YARDENI’S BOOK, FED WATCHING FOR FUN AND PROFIT:
A PRIMER FOR INVESTORS
- YARDENI REALLY GOOD WRITER
- FOLLOWING THE FED FOR 40+ YEARS
- EVENTFUL PERIOD ON MANY FRONTS
- FED HAS EVOLVED INTO WORLD’S MOST POWERFUL AND INFLUENTIAL FORCE IN FINANCIAL MARKETS
STAY THE COURSE
- long term investors should stay in the market
- 2020s could be another 1920s with technological innovation, productivity, and prosperity
No stock mentions in this episode.[/tab]
[tab]Ed Yardeni from the WEALTHTRACK Archives:
As part of his day job as head of his global investment strategy firm, Yardeni Research, Ed Yardeni generates two comprehensive research reports daily. Yet in the last three years he has also managed to publish two books, his professional autobiography, Predicting the Markets, and recently, Fed Watching for Fun & Profit. We asked him how he found the time.