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Retail Investors Clash With Pros Over Best Stock Trade Before the Fed Rate Decision

The MLIV survey found that do-it-yourself traders said holding US stocks is the smartest trade, while professional investors opted for shorting equities.

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How Are Investors Positioning for the Fed Decision and Beyond?
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Ahead of this week’s Federal Reserve meeting — and in a year when many didn’t make the right calls — professional investors and do-it-yourselfers are sharply divided over the best way to position ahead of the central bank’s rate decision on Dec. 14.

The top responses in the latest MLIV Pulse survey found that 37% of retail investors believed owning US stocks is the best trade ahead of the rate decision, while 40% of professional investors said it’s better to short them.