Why Rate Hikes Don’t Kill Stocks
Hello Trader, Kevin Warsh went ahead and did it. The Fed restarted the rate hike cycle. That upends the entire macroeconomic structure, because they’re tinkering with the price of money itself. Everything else falls downstream from that. But what if rate hikes don’t actually hurt stocks? Shocking right? Every economist on television would vomit their insides out if they heard me say this. So let me show you what the history actually says about hikes, where the money rotates next, and how I’m positioned going into it. Why Hikes Don’t Automatically Kill Stocks Traders keep repeating that rate hikes are bearish for stocks. History doesn’t back that up. The argument goes that higher rates crush valuations, borrowing costs climb for companies, and bonds start looking better than equities. Each of those channels is real in time. History still doesn’t treat every hiking cycle as a sell signal. In most modern