Stock Performance during Interest Rate increases

The Federal Reserve is expected to begin raising interest rates in March 2022. There is fear among investors about how stocks will perform in this environment. Stocks typically had positive performance in the previous interest rate cycles dating back to 1984. Stocks rose on almost 14% following the first interest rate increase of those periods. Usually, interest rate increases occur when the economy is strong and there is concern about inflation. So, the coming interest rate increases aren’t a bad thing, it’s a sign that businesses are doing well, and the Federal Reserve is trying to slow inflation before it slows the economy.