Opinion: Stocks, surprise, have risen when the Fed raises interest rates – MarketWatch

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What if everything you read and hear about the Federal Reserve, rate cycles and the stock market is all wrong? It probably is. It sure has been for decades.

Many money managers, hedge fund managers and home investors have told me that the stock market is in big trouble because the Fed has started to raise interest rates. Everybody on CNBC and Fox Business and Bloomberg will give you a litany of reasons why the Fed’s moves are supposed to be a Very Big Deal and Very Bearish for stocks.

Yet for the last 20 years or so, as you’ll see in this report, the exact opposite has been true — you would have wanted to be in stocks when the Fed was in a tightening phase in the late 1990s, while you would have wanted to be out of the markets or even short stocks when the Fed was easing again from 2000 to 2002.

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