Throughout history the prominent Wall Street mantra has been, “Don’t fight the Fed.” In essence, the credo instructs investors to sell stocks when the Federal Reserve increases its Federal Funds interest rate target and buy stocks when the Fed cuts its benchmark objective. The pace of interest rate increases since early 2022 has increased at the fastest rate in over four decades (see chart below). Unfortunately for those following this overly simplistic guidance of not opposing the Fed, investor portfolio b
Source: TradingEconomics.com
The technology-heavy NASDAQ index has skyrocketed even more by +31.7% this year, thanks in part to Apple Inc. (AAPL) surpassing the $3 trillion market value (+49.3%), thereby exceeding the total gross domestic product (GDP) of many large individual countries like France, Italy, Canada, Brazil, Russia, South Korea, Australia, Mexico, and Spain.