Fed-Watching: Meager Actionable Insight

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In this episode, Clem Miller and Steve Davenport address a key investor question:  Just how actionable is the economists’ and strategists’ standard playbook of intense “Fed Watching”?  

Steve and Clem challenge the myopic view, reinforced by business media, that somehow the Fed  is an all-seeing puppeteer controlling U.S. and global financial markets.  

Steve and Clem point out that for investors to make any money on Fed decisions depends on their being able to make quick macro trades on non-consensus views on inflation rates and employment.   And even then, the chances of success are minimal. 

Steve and Clem stress that they favor buy-and-hold investing, where earnings, corporate structures, and capital allocation, among other fundamentals sculpt stock performance, outweighing the influence  of the Fed’s short-term interest rate adjustments.

Straight Talk for All - Nonsense for None

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Disclaimer - These podcasts are not intended as investment advice. Individuals please consult your own investment, tax and legal advisors. They provide these insights for educational purposes only.