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Once Fed Hikes Stop, Markets Fall
(USATODAY) -Wall Street is betting big on stock prices heading higher once the Federal Reserve stops raising interest rates. But there's no guarantee it will be a winning bet, history shows.
For months, market strategists have been trumpeting the fact that stocks usually rise when the Fed ends its rate-increasing campaigns. Many pundits cite the expected end to the current "tightening cycle," perhaps as early as March, as the key catalyst that will boost stocks.
Going back to 1929, the Standard & Poor's 500 was actually lower six months after the last rate increase 71% of the time and down 64% of the time 12 months later, according to data that NDR compiled for USA TODAY.
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(USATODAY) -Wall Street is betting big on stock prices heading higher once the Federal Reserve stops raising interest rates. But there's no guarantee it will be a winning bet, history shows.
For months, market strategists have been trumpeting the fact that stocks usually rise when the Fed ends its rate-increasing campaigns. Many pundits cite the expected end to the current "tightening cycle," perhaps as early as March, as the key catalyst that will boost stocks.
Going back to 1929, the Standard & Poor's 500 was actually lower six months after the last rate increase 71% of the time and down 64% of the time 12 months later, according to data that NDR compiled for USA TODAY.
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