In the News

Title

How Fed Policy and Rates Influence Market Returns

Document Type

Article

Publication Date

12-18-2015

Abstract

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).