Don't fight the Fed. It's one of the oldest rules on Wall Street. It also continues to be excellent advice, considering that investors buy risk assets like stocks when the Federal Reserve is hiking rates often lose money... either through a falling stock market or by not putting their money to work into other assets. The S&P 500 was flat during the Fed's recent hiking cycle from March 2022 to September 2023. Conversely, those who don't invest in stocks when the Fed is cutting or holding rates steady often miss out on strong market gains. The S&P 500 soared more than 50% during the Fed's rate cutting cycle of March 2020 to March 2022. This year, however, is a bit different. |
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