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Analysis of the Fed Model in Investment and Potential Optimizing Strategies

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DOI: 10.23977/ferm.2023.061014 | Downloads: 10 | Views: 287


Ao Chan 1


1 Brandeis University, Waltham, MA 02453, USA

Corresponding Author

Ao Chan


The Fed Model, a widely discussed investment model, has played a pivotal role in shaping investor perceptions and asset allocation strategies. This article conducts an in-depth analysis of the Fed Model's performance and its relevance in contemporary investment decision-making. By examining the logics behind and the factors it relies on, this study sheds light on the strengths and limitations of the Fed Model. Considering the logics behind the terminology "investment" and the choose and calculation of variables, this article explores potential optimizing strategies that can enhance the effectiveness of the Fed Model in guiding investment decisions. The findings of this research offer valuable insights for investors, financial analysts, and policymakers, helping them navigate the complexities of financial markets and make informed decisions in an ever-evolving investment landscape, and moreover, the reasons for the steps taken towards to goal.


Fed Model, Earnings Yield, Bond Yield, Risk


Ao Chan, Analysis of the Fed Model in Investment and Potential Optimizing Strategies. Financial Engineering and Risk Management (2023) Vol. 6: 100-110. DOI:


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