Customer Quote by Anonymous
““Consider the following investing strategy: On the day before a Fed policy announcement, buy the stocks in the S&P 500 index. Sell them a week later, and buy them again the following week. Stick with that pattern until the Fed next meets. Sound ridiculous? A portfolio run this way since early 1994, when the Fed's policy-setting committee began publicly announcing interest rate decisions, would have returned about 650%. That is significantly better than the S&P 500's total return over the entire period of about 505%. The pattern of stocks performing””
About This Quote
Source Analysis: Investment strategy discussion (anonymous author)
The passage describes a timing strategy that buys S&P 500 stocks before Fed announcements and sells after a week, claiming a 650% return since 1994, outperforming the market.
In simple terms: A specific trading pattern allegedly beats the market.
Key Takeaway
Consider timing markets around major policy events.
Themes
finance
investment
market timing
Mood
analytical
skeptical
Type
financial
strategic
When to use this quote
- trading
- portfolio management
- risk assessment
- policy analysis
Key Concepts
risk management
behavioral finance
historical performance
Questions to Reflect On
- Is the strategy sustainable with fees?
- What risks does timing around announcements pose?
A Different Perspective
Requires precise execution and may ignore transaction costs.
![“I would say [Fed policy] has been in some sense Reverse Robin Hood.” quote by Kevin Warsh](https://sms4smile.com/quotes/img-quotes/78f/kevin-warsh-53792_customer_i-would-say-fed-policy-has-been-in-some_2528468.jpg)
![“QE and other aspects of Fed policy increased inequality pretty significantly. This is reinforced if you take into account all the other non-standard measures the Fed used to bail out the banks early on in the [2008] crisis.” quote by Gerald Epstein](https://sms4smile.com/quotes/img-quotes/791/gerald-epstein-28513_accounts_qe-and-other-aspects-of-fed-policy-incre_273248.jpg)
