How Fed Policy and Rates Influence Market Returns
Robert R. Johnson
The direction of Fed policy has a significant impact on markets, according to Robert R. Johnson of the American College of Financial Services, in a recent piece for Barron’s. Dr. Johnson notes that 1966-2013 data show the S&P 500 returned an annualized 15.2% during expansive periods (falling rates) but only 5.9% annually during restrictive periods (rates rising).
The Guru Investor, "How Fed Policy and Rates Influence Market Returns" (2015). In the News. 815.