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Kensho Stats

How to trade the Fed's Jackson Hole conference

Jackson Hole economic summit
Stephanie Hager | HagerPhoto | Getty Images

As investors turn their attention to Friday's gathering of global central bankers at Jackson Hole, Wyoming, history shows there could be a profitable trade to be made.

According to data from Kensho, a quantitative tool used by hedge funds to spot historical trading patterns, a group of sectors tended to emerge as winners during the three-day conference.

Since the end of the financial crisis, the Federal Reserve released a statement seven times during the annual economic policy symposium.

Here's how stocks reacted to those comments.

Over the three-day meeting, the S&P 500 traded positive most of the time and returned more than 1 percent on average. In the two instances the benchmark lost ground during the conference, the pullback amounted to only 0.6 percent in 2010 and 0.4 percent in 2012.

Even last year, ahead of the Fed raising rates in December, the S&P climbed more than 1.5 percent during the Jackson Hole gathering.


The energy, financials and materials sectors led the way, suggesting that investors have been comfortable taking on more risk. On the other hand, the worst performers have been defensive groups like utilities and consumer staples, according to data from Kensho.


Disclosure: NBCUniversal, parent of CNBC, is a minority investor in Kensho.