Over the past 12 months, plenty of market bears have been complaining about the Federal Reserve’s desire to raise interest rates and the negative impact such hikes will have on equity prices, notable the S&P 500.
Arguments ranging from higher credit costs for indebted companies to a rising discount rate have been given as the possible catalysts for equity market declines. Unfortunately, no one really knows what will bring the next market decline -- unless they have a crystal ball -- and there’s no telling how much longer the current rally will last and if the Fed’s actions will be the catalyst that the sparks a decline.
To try and second-guess how the market will react as the Fed begins to...
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