History Says Stocks Typically Fall After a Fed Hike Cycle Begins -- Then Gain 6.8% Within a Year. Here's My Plan.
The stock market has followed a fairly predictable cycle when the Fed starts raising rates.
Overview
Last month, the Federal Reserve raised interest rates for the first time since 2023. It will likely continue raising them in the near term as it works to get inflation back under control.
The S&P 500 Index (SNPINDEX:^GSPC) has historically declined once the Federal Reserve starts raising rates. However, it typically recovers within a year. That's why I plan to capitalize on any near-term weakness by adding to stocks I expect to participate in the eventual recovery.
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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.