The Federal Reserve is planning on interest rates moving up to 2.0 to 2.5 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 are down for the year now early in 2022, partly on higher market yields like bonds, but also due to the Russia Ukraine war. The jury is out on whether Fed hikes in 2022 will keep stocks down for the year.
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.