By: Tom Goodwin, Senior Research Director
It seems one cannot open a financial newspaper or tune into an online interview without hearing speculation about when the Federal Reserve Bank (the “Fed”) will raise interest rates, how far, and how fast. This has been going on for years now, with pundits poring over the arcane statements of successive Fed chairpersons. It would be comical except that the consequences for investors if the Fed should raise interest rates are highly uncertain and potentially large. In hopes of shedding light on the impact of rising rates, I took a look at the historical record to see how equity style indexes have responded to periods of rate hikes in the past.