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The Fed’s 4th rate hike could challenge a popular assumption investors make about stocks

The assumption that rate hikes are bad for stocks could be challenged yet again.

The Federal Reserve on Wednesday raised interest rates for the fourth time in this cycle. Fed Chair Janet Yellen said the decision reflected the labor market’s improvement and, to a lesser degree, inflation.

While higher interest rates indicate the Fed’s view of a strengthening economy, they also raise borrowing costs for companies and dent stock valuations. Hence, the parlance that rate hikes are bad for stocks.

Nautilus Research looked into how the market reacted in the past to fourth rate hikes that were not accompanied by a read more >>>

Source:: BusinessInsider.Com

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