Take advantage of a Fed Rate Hike

wnd4

The 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 per cent per period.

The S&P 500 Index also has a history of moving higher after the first increase in the Fed Fund rate is announced. On average during the past 12 periods, the S&P 500 Index during the next three months gained 10.9 per cent per period.

Date of first rate hike       % gain after 3 months

March 14 1955                             13.5
March 5 1968                               14.4
May 26 1970                                17.2
Nov. 23 1971                               16.9
Oct. 3 1974                                  13.5
Oct. 29 1980                                 9.3
July 24 1984                                 (1.7)
Dec. 4 1987                                  19.4
April 4 1994                                    1.7
April 11 1997                                 24.3
May 27 1999                                  5.2
Aug. 12 2004                                 11.4
Mean Average                                10.9
Median Average                              13.5

wreckbeach

"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 per cent per period.

The S&P 500 Index also has a history of moving higher after the first increase in the Fed Fund rate is announced. On average during the past 12 periods, the S&P 500 Index during the next three months gained 10.9 per cent per period."

wreckbeach

先下平均10%，然后再上平均10%，造成了剧烈波动，重新回到原地，就当什么也没有发生过。

源济

acoust