The Fed Is (Probably) Going To Buy Stocks -- Should You Too? | Freeman Capital

Are You Thinking of Investing?

Are you sitting on some cash in your account, and don’t know what to do with it? 

Maybe you’ve thought about buying a new car, an investment property, or buying a business. Maybe some of your friends have talked about how they bought Tesla and Netflix this year and have made a ton of money. 

However, that’s not investing. That’s gambling. 

We think you need to invest in a diversified basket of stocks to ensure financial freedom later in life.

Enter the Fed

One of the reasons we’re still comfortable investing our life savings and our clients’ life savings (properly) is how the Federal Reserve (Fed) is acting. For those that don’t know, the Fed is the powerhouse that helps economies from going into deep recessions (by dropping interest rates and creating more cash), but also from not overheating and producing too much (by raising interest rates, and reducing cash in the economy). 

That’s not all they do, though. The Fed has what they call a “dual mandate,” and the first part is to promote “maximum employment.” With all of the job losses due to covid, they’ve been trying to do the first part to the best of their ability to stop a depression, which is just a really bad and extended recession. So far, they’ve done a pretty good job of that. 

But the next step they will probably take is actually buying stocks. That has never happened before, and is something that has been made possible by the recent economic uncertainty and wide-ranging shutdowns of the economy.

What You Should Do

One of the most used phrases over the last couple decades is “Don’t fight the Fed.” The reason is the Fed can print, essentially, unlimited amounts of money to do what they want to accomplish. If they start buying stocks, which seems likely, we won’t be fighting the Fed. We will be joining them. Better yet, now is a great time to get started, before they announce they are doing it. 


Learn how to invest safely, backed by mathematical models, and get in contact with us today.

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Freeman Capital

Freeman Capital

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