S&P 500 Poised to Rally Over 12% In Coming Year As Fed Rate Hikes End
-
The S&P 500 fell over 19% in 2022 due to aggressive Fed rate hikes, but has rebounded in 2023 as inflation cools.
-
Historically, the S&P 500 rises 83% of the time in the 12 months after the Fed ends a rate hike cycle. The average return is 15.9%.
-
Current market data implies the Fed could cut rates in 2023, signaling the end of the hike cycle. This could boost stocks.
-
If history repeats, the S&P 500 could rise about 12% over the next 12 months after the last rate hike on July 27, 2022.
-
Investors should take a long-term approach, as the S&P 500 has always gained over any 20-year period historically.