8 Years of History Warns What a September Rate Hike Could Mean for Stocks
Forecasts of doom and gloom due to rate hikes have been heavily overstated.
Overview
At its mid-September meeting, the Federal Reserve opted to increase interest rates, and so far, the stock market is holding up just fine. But, per the historical data, after the last two September rate hikes, the stock market fell within weeks.
That's obviously alarming for anyone invested in stocks in the S&P 500 (SNPINDEX: ^GSPC), the Nasdaq Composite (NASDAQINDEX: ^IXIC), or the Dow Jones Industrial Average (DJINDICES: ^DJI). But the last eight years of market history suggest that the damage from a September hike has tended to be temporary, so let's examine the data.
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Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.