How Has the Stock Market Done Historically During Rising Rate Periods? Be Hedged!
Broken Pie Chart · Broken Pie Chart
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Show Notes
Watch CNBC for more than 5 minutes and you are bound to hear discussion around is inflation coming? Are rising interest rates going to sink the stock market? But what has the stock market done historically during periods of rising rates? You might be surprised to find out. Take a look back at S&P 500 Returns in rising rate environments, rising inflation, rising unemployment, and more.
Once again, worries about the stock market led us to a Hedged Equity Strategy
How have stock markets performed during rising rate environments?
How have markets done during rising inflation?
Is this time different with the recent rise in rates?
Looking at historical market returns over cycles.
Surprising that during late seventies GDP grew and President Carter had average annualized growth in stocks.
Markets climbing the wall of worry.
Risk heightened in bonds due to record low interest rates.
Comparing bonds in 1970's with high coupon rates to today
Mentioned in this Episode:
Risk for bonds with lower and rising interest rate environments https://directory.libsyn.com/episode/index/show/brokenpiechart/id/18089738
Numbers show stock markets have done ok during rising rate environments historically https://zegafinancial.com/blog/historically-markets-have-done-pretty-good-in-periods-of-rising-rates
Stagflation explained and data on CPI inflation, unemployment, and GDP growth 1965-1985 https://zegafinancial.com/blog/historically-markets-have-done-pretty-good-in-periods-of-rising-rates
Derek Moore's book Broken Pie Chart https://www.amazon.com/Broken-Pie-Chart-Investment-Portfolio/dp/1787435547/ref=sr_1_1?keywords=broken+pie+chart&qid=1558722226&s=books&sr=1-1-catcorr
Contact Derek www.razorwealth.com