Strategies · Core
FOMC Meeting Effect in Stocks
Time equity exposure around scheduled FOMC days — a calendar of policy-event premia, not a statement-parse.
Definition
Overweight the index in a window around FOMC (definitions vary: announcement day, or the 24h around). Flatten after. You are harvesting an average event premium, not predicting the hike.
Why it matters
A surprising fraction of the equity premium has been earned on a handful of Fed days in some samples. That is also why it gets crowded.
Case
A hike day that gaps down 2%. The average premium did not show up. Event strategies need a distribution, not a mean.
How to read it
Exact window, futures vs cash, and whether you are just long beta on every risk-event day (CPI, NFP too).
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