"Don't fight the Fed" should work in both directions

The adage for most traders is that you should never fight the Fed. If the Fed is lowering rates, assume that this is good for risky assets. This has worked for decades. It should also work in the opposite direction. If the Fed is raising rates, stay out of risky assets. Yet, it seems like we have a "fight the Fed mentality". The Fed has stated "we have more work to do" and "ongoing increases in the target range will be appropriate" which is not suggesting that rates have topped or will be coming down soon. The Fed has stated that is data based and six months of data not three months is more likely needed before there is a pause. At least two, more likely three, will be the cards. 

Should the markets bid up risky assets to front-run the Fed? We know that markets are forward-looking, but it may be premature to expect that cash flows should be discounted by a lower rate this summer. A pause in rate increases is not the same as a decline, and inflation stickiness will increase as the rate of inflation falls.

While Fed forecasting has been poor and there may be a revision in SEP forecasts in March, the core view that the Fed wants to constrain the economy should be the market regime foundation. Additionally, central banks around the world may be behind the curve and require more increases regardless of Fed action.