How to take advantage of a Fed rate hike

Posted by Don Vialoux - Timing the Market

Share on Facebook

Tweet on Twitter

WAS202 USA FED

WAS202 USA FEDThe first increase in the Fed Fund rate historically has had a significant impact on equity markets, both before and after the event. Since 1955, the Federal Reserve reversed its interest rate policy with an increase in the Fed Fund rate on 12 occasions. Equity investors anticipated a negative response during the six month period prior to the first increase.

Net result: the S&P 500 Index recorded 12 consecutive corrections averaging 10.0 per cent per period……read more HERE