The theme this week on the Retirement Quick Tips Podcast is: Don’t Fight The Fed

Today, I’m asking the question: Does The Fed Write The Script For The Stock Market?

• “It’s been said that the Federal Reserve writes the script for the stock market. The evidence supports that theory. The Fed, as it is commonly called, has the job of adjusting the growth of the nation’s money supply, monitoring the trend of credit or borrowings, and influencing the level of interest rates. It does not necessarily tackle all of these tasks at any one time, but whatever goal the Fed has in mind, it is certain to have a major impact on interest rates and ultimately on stock prices.” - Zweig
• With this in mind, let’s look at history. If you layer a chart of the Federal Funds Rate over the stock market over the long-run, you’ll see an interesting connection that’s worth paying attention to.
• When the Fed lowers interest rates, it’s a strong bullish
• Not the only indicator, but it’s a powerful one, because as I mentioned on Tuesday’s episode, as Zweig pointed out in his book Winning on Wall Street, “in the stock market, as with horse racing, money makes the mare go. Monetary conditions exert an enormous influence on stock prices.”

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast.

Subscribe on Apple Podcasts: https://apple.co/2DI2LSP

Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

Visit the podcast page: https://truenorthra.com/podcast/

Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance