Every morning, as the opening bell echoes across the trading floor, millions of retail investors log into their brokerage accounts. They look at P/E ratios, read analyst upgrades, and study candlestick patterns. They believe that if they just crunch the numbers hard enough, they will unlock the code to why the stock market goes up.
This is the "Fed Put"—the idea that if the market drops 20%, the Fed will cut rates and print money. But the undeclared secret is that the Fed Put is not a policy; it is a psychological contagion .
Traders behave recklessly because they assume a safety net exists. This behavior itself drives prices up. It’s a self-fulfilling prophecy. As long as traders believe the Fed will save them, they buy the dip. That buying prevents the crash, which justifies the belief.
Every morning, as the opening bell echoes across the trading floor, millions of retail investors log into their brokerage accounts. They look at P/E ratios, read analyst upgrades, and study candlestick patterns. They believe that if they just crunch the numbers hard enough, they will unlock the code to why the stock market goes up.
This is the "Fed Put"—the idea that if the market drops 20%, the Fed will cut rates and print money. But the undeclared secret is that the Fed Put is not a policy; it is a psychological contagion . the undeclared secrets that drive the stock market upd
Traders behave recklessly because they assume a safety net exists. This behavior itself drives prices up. It’s a self-fulfilling prophecy. As long as traders believe the Fed will save them, they buy the dip. That buying prevents the crash, which justifies the belief. Every morning, as the opening bell echoes across
