The Fed Is Expected to Raise Interest Rates Wednesday. Should You Buy the S&P 500 Before It Does?
A Fed rate hike isn't necessarily a signal to sell stocks.
Overview
Just one month ago, most economists expected the Federal Reserve to leave interest rates unchanged at its meeting this week. As of Monday, the futures market had priced in a 90% probability of a quarter-point rate hike.
If you're considering buying (or continuing to buy) the Vanguard S&P 500 ETF (NYSEMKT: VOO) or other U.S. large-cap equities, the question right now is, should you buy the index before the Fed announces its rate decision or wait to see what happens first?
Details
Personally, I would continue buying. But not because I think stocks will rally on Wednesday afternoon.
Source
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.