The 'Fed model' is warning us to be careful

The 'Fed model' of stock valuation is used by many big investors. And now it's saying that it's time for extreme caution. Theo Casey explains what it is, how it works - and why you should listen to it.

Stocks have had a fantastic run-up. The rally of the past year or so has been nothing short of spectacular. But now it's time for investors to be cautious and pull in their horns.

"Come on", you say. "Pundits have been predicting a crash since the start of the rally. Why should we pay any attention now?"

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Theo Casey

Theo is a former financial writer and editor, having written for reputable titles such as Euromoney Institutional Investor and Redwood Publishing. He has also appeared on-screen with Al Jazeera, BBC and CNBC and on MoneyWeek Theo covered funds, share tips and stockmarkets. He also edited the country's oldest newsletter with Lord Rees-Mogg for four years. Theo now runs his own content marketing agency for financial companies, and he is a seasoned CISI-qualified investment adviser.