Editor's Note
Building Wealth - Note 112
Why the FOMC Meeting Doesn’t Matter to Your Wealth 💰
Last week, investors and traders around the world were glued to their screens waiting for the Fed's latest interest rate decision.
Some were betting on a hike. Some were betting on a hold. All of them were trying to figure out whether markets would move up or down in the hours that followed — and treating that information like it was the difference between financial success and failure.
It isn't. And the charts below prove it.
The first chart shows the S&P 500 over the past several months. The FOMC meeting sits somewhere in that white circle. A lot of very serious people spent a lot of energy on what happened inside it./
The S&P 500 since February.
The second chart shows the S&P 500 over the past 90 years — up 172,000%.
The price of S&P 500 over the past 90 years.
See that white circle now? Neither can I.
That's the point. Emotional investors, reactive traders, and anyone trying to outsmart the Fed are all fixated on a rounding error on a 90-year chart. They're treating a single data point like it's the whole story. It isn't even a footnote.
Do I care what the Fed did with interest rates last week? No.
Should you? Definitely not.
Here's the entire playbook for building real, lasting wealth — three things, full stop:
Invest Consistently. Over a Long Period of Time. Into Real Assets.
That's it. CLR. Write it down.
Every time you deviate from that — every time you try to predict what the market will do next, react to a Fed announcement, or reposition your portfolio based on a news cycle — you are actively working against your own returns. The research is unambiguous on this. The investors who do the least tend to win the most.
The FOMC meeting happened. The market had a reaction. And in 90 years nobody will be able to find it on a chart.
Stay the course.
— Solid Right
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