the phrase "Don't fight the FED" was coined by Martin Zweig in his 1970 book ("Winning on Wall Street). That was 40 years ago. That conclusion was from his researches on the markets, so I guess the FED's inducement in the markets has been going for 50 years or more, not something happened recently, ... without the FED acting as an anchor (some sort of like confidence stabilizer), I think we'd see more volatilities and chaos in the markets. big money managers look at the FED for leadership for how to play this musical chair orchestra, ... there's no financial benefit to play out of tune with the FED (no one is rich enough to fight against the FED). Also, there's a safety in herd I think, and that characteristic has been reflected in the market behavior. I think chairman Powell is a cat person. He could be a cat herder
I’d counter that although this has been correct for the time periods you mention, the true lesson from history is don’t fight free markets — they always win in the end. Positioning correctly for a move like that in a market like this is a life changer. But that trade is less frequent than a generational trade. Not easy and we’re unlikely to get it right. But we are all trading for the allure of that next great trade, right? If a trader isn’t trading for these markets, I don’t know what motivates them.
