Three Studies Show – Investors Should Not Fear Interest Rate Hikes

With the US economy showing signs of life, the Federal Reserve is widely expected to raise interest rates during 2015 for the first time since the financial crisis.

And the market seems to be terrified by the prospect of higher rates. The Fed’s easy money policies have propelled the market higher for much of the past six years, and investors are concerned that if the market loses this support, a correction will follow soon after.

However, there’s plenty of evidence that suggest the opposite will happen.

Interest rate hikes - Three studies

The first set of data comes from Ben Carlson, a portfolio manager for the endowment fund at the Van Andel Institute, a medical research center in Grand Rapids, Mich. This...