Our Fed Playbook: Fight the Fed
We explain why the "Don't fight the Fed" adage is a myth and detail how to set up our portfolio for what the Fed does next.
Bryce here. It's Fed week, and the Fed is widely expected to hold rates unchanged in July but set the groundwork for rate cuts beginning in September. Accordingly, Cody and I thought it might be interesting to re-read Cody's "How To Predict and Profit from The Fed's Bubbles and Crashes."
We made the book free to the public so you don't even need to be logged in to TradingWithCody.com to read it.
Our Fed Playbook, if you will, is nothing new, as Cody has been writing about this for literally decades now as you will see below. But here's the short of it and how it applies to today: the old adage of "Don't fight the Fed" is dead wrong, as history has shown us time and time again.
The time to be bullish is when the Fed is in tightening/sideways mode, as it has been for the last 18 months and we have been mostly bullish during that time!
If and when the Fed actually starts to cut, that's bearish. That said, the day the Fed cuts, we fully expect a two or three-day rally, and then things start to get ugly after that.
