Follow the FED – A Way to Investment Returns

I subscribe to a free newsletter by Doug Roberts which is based on following the FED. Don’t fight the FED is his mantra and he shows how well this strategy would have worked if you had been following it since 1969.

Follow the FED Standard & Proprietary vs. the S&P 500

Doug claims that by using the information he provides in his paid-for newsletters you can enjoy great returns and possible avoid some of the pitfalls of investing in Mutual Funds using a buy and hold strategy.

The chart opposite shows how well you would have done if you had followed the FED through using his advice since 1969. (I’d like to see the chart through to March 2009 when the FED was making policy on the run though)

The emphasis is on simplifying your investment strategy and following the FED could not be simpler. He goes on to say,

“The Follow the Fed® strategy represents an excellent alternative to manage these investments since its focus on stock types and limited trading can be adapted to most 401(k) and retirement plans.”

Doug said that now the FED publishes the minutes of the internal FED policy meetings anyone should be able to read and analyze the minutes to get a clearer idea of what the FED will be doing.

Using this information Doug offers advice through his subscribers newsletters and as stated previously appears to have made money using these strategies. In fact,

“These strategies are easy to understand and to execute. You can build true wealth in less than one hour per year of your time! Many other investment strategies require so much time to handle that you have to quit your job, end your retirement, or give up all your free time. The last thing you need is a new career in investing.”

I definitely agree with that last statement despite Ben Bernanke’s claim you should all get more financially literate. That’s just not going to happen and even if you do become financially literate today, you are unlikely to maintain your financial savvy after you reach 75 or so years old, maybe even less.

My own view is that the FED is an uncontrolled entity without any rules and can do just about what it wants to do to manipulate the money supply and interest rates. Therefore following the FED makes good sense as long as it actually does do what it says in its published meeting minutes.

I assume Doug has a strategies to combat such situations and protect your money.

If you subscribe to his newsletters you will be provided with,

“Description and current positions of all Follow the Fed® investment strategies (Proprietary, Filtered, & Standard) listed in our members-only section of the web site. We do all the work and calculations for you.”

So all you have to do is follow Doug following the FED. It seems to me it could not be easier.

However as with all things about investing you must cheFollow the Fed to Investment Success offers an easy-to-understand approach to investingck it out thoroughly yourself. Doing this will help you hone your skills in evaluating what is good and bad in the world of financial newsletters.

On the surface I can see no down-side. But I would paper trade the recommendations for a few weeks or only invest small amount of capital to test the strategies Doug offers. There is a 60 day money back guarantee too.

I have purchased many products only to find they either don’t work the way I thought or don’t live up to the statements and I have always got a refund if I wanted one. So don’t let that stop you putting Doug’s strategies to the test.

Take a good look at the website Channel Capital Research and subscribe to the free newsletter to judge for yourself if it will benefit you and your situation. He is offering a free “Follow the FED Tool Kit” for anyone signing up right now. It includes;

  • How to Use Federal Reserve Policy to Achieve Great Wealth ($29.95 Value)
  • Creating an Investment Fortune with an IRA or 401(k) ($29.95 Value)
  • The Edge: How to Do Nothing and Build Real Wealth Using the Power of Compound Interest ($29.95 Value)
  • The Secrets of Asset Allocation ($29.95 Value)
  • The Secrets to Working with Financial Professionals ($29.95 Value)
  • The Ultimate Tool for Stockpickers & Traders ($29.95 Value)
  • Our Follow the Fed® Investment Mini-Course: All you’ll need to know about Wall Street in 12 Easy Lessons ($59.95 Value)
  • Email notification of new posts by Follow the Fed®’s Doug Roberts on his AOL Column
  • Email notification of Follow the Fed® in the News

It seems like a good deal to me. Subscribe and judge for yourself.

You can also order his book, “Follow the FED to Investment Success“.

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