The anticipation for the Fed's decision is rising day by day. Despite negative data on jobless claims, which hit a five-month high last week, many believe US Federal Reserve Chair Janet Yellen will announce the first upward hike on Wednesday, December 16. interest rates after about a decade of “accommodative policies”.
The stock and bond markets are anxiously awaiting the verdict. To date, operators are 80% discounting a rate hike by the Federal Reserve, but the greatest concern concerns above all “the aftermath”. In other words, the doubt concerns in particular the effects that the decision may have on the markets.
The Global Equity Stragedy report published by Credit Suisse has come to reassure investors.
Retracing what happened in the past, the experts of the Swiss investment bank recall that the first rate hike caused a correction of the stock market of around 7%. Despite this, the upward trend of the stock markets has not stopped due to the increase in interest rates. In addition, in the six months following the announcement, the shares managed to recoup their initial losses, exceeding their pre-retouch levels by 2%. History therefore shows that there is no need to be afraid. Or so one hopes.
