Resistance is Futile…Don’t Fight the Fed!

Last month I wrote a piece about not fighting the Fed — that is, not investing contrary to Fed policy.

That’s been a common theme for many years, as those who have done so have lost big.

Now, bond investors aren’t stupid. I was surprised last week when they continued to push yields lower after the Fed’s press conference, but they caught back on quick.

After the meeting, long-term rates were at 2.54%, sliding to 2.48% last Wednesday, March 25. By Friday, March 27, they were back up to 2.6% — even higher than at the time of the meeting the week prior.

Sure, it took a week to sink in, but these bond investors understand