Historically, Rate Hikes Haven't Spurred Market Declines

There is considerable fear in the market that the start of rate hikes by the Fed would mean the kiss of death for equities. While there are characteristics of the past six-year stock climb that suggest a withdrawal of easy money could lead to deleveraging (such as moral hazard leading to excess leverage), there isn't a historic connection that says this is an inevitable outcome. Rate hikes most often occur when the economy is strong and capital markets are performing alongside growth.