12.17.21 Sector Playbook for Fed Rate Hikes Favors Value
For those of us who haven’t already started holiday vacations, we all know this was Federal Reserve (Fed) meeting week. In anticipation of how much investors would be focused on the Fed this winter, we put a chart in Outlook 2022: Passing the Baton showing how well stocks have historically handled the start of rate hiking cycles, shown below.
The chart in the Outlook 2022 publication showed stock performance in the 12 months leading up to initial rate hikes over the past 60 years. The numbers are great—an average gain of 11.5% and positive in all 9 cases. But now that the Fed has made its big pivot, the
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