The Federal Reserve is planning on interest rates moving up to 4.5 percent at the end of 2022. Historically, Federal Reserve interest rate hikes have held stocks down, although the December 2015 to December 2018 series of rate hikes to 2.5% did not, perhaps because stocks had been held down for so long after the stock market bubble collapse in 2000. Corporate tax rates were dropped from 35 to 21 percent as part of the Tax Cuts and Jobs Act in December 2017 as well which may have boosted share prices despite Fed tightening.
Stocks were down as much as 24.5% in the first half of 2022, bounced for a time, but started falling again propelled by Fed speakers and a few bad consumer inflation reports. Down 27.5% from the highs in 2022 at the very end of the October 14 week.
Stock market trend:
click on image below to view moive
By the way, in the way of the usual disclaimers, this is a legal reminder that there is no investment advice offered or given anywhere in these products or on the fwdbonds.com website. These are just the things we would like to see before we save, invest, spend, and otherwise plan for the future, which of course is always uncertain.