Many less than optimal trading/investment strategies exist, yet by far the least probable to succeed in my experience is the ‘front-run’ or ‘outsmart the Fed’ strategy. This ‘strategy,’ for the lack of a better term is rooted in arrogance and ignorance for while even if we can guess correctly the language in any given Fed statement, we may not be able to gauge how investors will react. At present, some financial stocks have given us nice looking rallies, but until next week’s FOMC meeting buying those stocks would be labeled ‘front-running the fed’ and thus is a low probability strategy.
Watch the short but important video here: https://www.youtube.com/watch?v=3fBvLpQG9JI
