For decades, investors would say they couldn’t fight the Fed—but many took pride in ignoring both ends of Pennsylvania Avenue. Long-term investors have grown accustomed to dismissing the type of wrangling that played out this week over the debt ceiling and continues with the $1 trillion infrastructure bill and the sweeping $3.5 trillion spending package. Instead, investors stuck with what they could measure. But that’s changing as the government is influencing the economy and markets in ways we haven’t seen in generations. Investors must embrace the new reality: What happens in Washington, D.C., will shape what happens…
