Why Interest Rates Really Don't Matter

Imagine if you had Fed Chair Janet Yellen whispering in your ear on what the Fed is planning on doing at the next FOMC meeting in December.

Or…

You were sitting in the room with the next Treasury Secretary and you were privy to how he or she was going to steer the economy over the next four years.

How much money do you think you’d make?

Would you mortgage your house and sell the family jewels to invest based on what you just found out?

If you did, you might not do as well as you think.

In fact, this kind of information doesn’t help you become a more successful and richer investor over the long run.

Despite the importance the media makes of it, knowing what the Fed or Treasury Secretary is going to do… will probably cause you more anguish than profit.

In 1954, the economy was in the middle of a recession, unemployment rose, and the Fed raised interest rates. If you invested based on economic news, you would’ve missed one of the 10 best years for the DJIA on record.

It soared close to 44% that year!

At the end of the day, it’s not the direction of interest rates or the strength of the economy that determines how your portfolio will do — it’s the direction that the business you invested in is headed.

Hard to believe, I know… but it’s true.

Look, Wall Street wants you to believe that knowing where rates and the economy are headed are important to make investment decisions — but they aren’t!

Trust me, the key to making money in this market is simple: buy quality stocks when they are selling at a bargain.

It really doesn’t get much easier than that.

Warren Buffett recently said that if the Fed Chair whispered in his ear what she was going to do for the next few years, it wouldn’t make the slightest difference to what he would invest in.

He basically said that if he had the chance to buy a great business for a sensible price, with the right people running it, he would do it regardless of where the rates were going.

They Didn’t Listen, Either

A few months ago, while I was researching a stock, I ran across an article about a parking lot attendant who never made more than $12 an hour, yet amassed a net worth of $500,000 by investing in stocks.

He didn’t know where interest rates were headed, and I’d bet you dollars to donuts he had no idea who the Treasury Secretary was over that past 30 years…

But the important thing was that it didn’t matter!

You see, this parking lot attendant found the secret on how to make money in the stock market. When he stumbled upon it, at first he thought it was too simple and almost overlooked it.

So many investors have probably come across the same secret… yet they put it aside because it runs contrary to what Wall Street is telling investors to do.

The parking lot attendant wasn’t the only one I found that built his net worth from zero to $500,000 on a $12 an hour salary.

I also uncovered a secretary in Lake Forest, Illinois, that quietly turned $200 into $7 million, and a couple that in Osgood, Indiana, that made $23 million from an office near the furnace in their basement.

None of these “secret millionaires” tracked interest rates or stayed up nights trying to predict next quarter’s GDP.

Instead, they followed a simple secret that Wall Street does its best trying to dissuade you from using to make life-changing fortunes.

And this is precisely the kind of investing you NEED to check out firsthand…

All of the details are right here.

All my best,

Charles Mizrahi

Twitter: @IWPeditor

Charles cut his chops on the trading floor of the New York Futures Exchange before moving on to become a wildly successful money manager on Wall Street.

And with more than 35 years of recommending stocks under his belt, Charles has knocked the cover off the ball, compiling an amazing record of success and posting gain after gain for his loyal readers. He is the editor of Park Avenue Investment Club and the Insider Alert newsletters.

Charles is also the author of the highly acclaimed book, Getting Started in Value Investing.