Karim Rahemtulla, Head Fundamental Tactician, Monument Traders Alliance Happy new year! As we dive into 2023, let's get right into how to play the Federal Reserve. First, it's important to know that basing your SHORT-TERM actions on what the Federal Reserve is doing is one of the oldest strategies on Wall Street. So if the Fed is lowering rates, you should go long on growth stocks, and if the Fed is raising rates, you should go long on value stocks. And if you really want to go to town, you should short growth stocks when the Fed is raising rates and short value stocks when the Fed is lowering rates. Those are the short-term options. But what about the long-term options? |
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