MarketWatch analysis suggests investors' best move after Fed rate hike is to do nothing, as stocks should still outperform bonds.
MarketWatch analysis suggests investors' best move after Fed rate hike is to do nothing, as stocks should still outperform bonds. This is because the equity risk premium, which measures how much stocks outperform T-bills, is on average no lower when interest rates are higher. Data from Dimensional Fund Advisers shows the S&P 500 has historically produced nearly identical returns regardless of whether short-term Treasury rates are above or below the median.
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Source:MarketWatch · Source Link
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