Search Results for: rate hike

S&P 500 Earnings vs. Fed Funds Historically, Fed rate hikes tend to impact S&P 500 earnings, which is not good news for U.S. stocks. Image: Real Investment Advice

Change in Financial Conditions Following Major Geopolitical Events Will the Fed delay rate hikes and balance sheet reduction? Image: Goldman Sachs Global Investment Research

Post-GFC Fed Balance Sheet Phases, Fed Funds, UST 10-Year and the S&P 500 Can U.S. stocks survive the Fed’s tapering and rate hikes? Image: Deutsche Bank

Average S&P 500 Performance in Fed Tightening Cycles Around 9 months after the first rate hike, the S&P 500 tends to be flat for over a year. Image: Deutsche Bank

Fed – Expectation for the Tapering Timeline Is it time to talk about tapering quantitative easing and rate hikes? Image: Goldman Sachs Global Investment Research

Valuation – Average Forward P/E in Core PCE Inflation Ranges Since 1976​ Historically, inflation generally had a negative impact on valuations when core PCE approached 2%, in the anticipation of rate hikes. Image: Goldman Sachs Global Investment Research

Fed Funds vs. Employment/Population + Inflation This chart suggests the optimal monetary policy, while Fed officials do not anticipate any rate hikes until 2022. Image: Oxford Economics

Real Estate Positioning At the 89th percentile, real estate positioning is firmly overweight, leaving the trade at risk if yields climb or rate-hike expectations pick up. Image: Deutsche Bank Asset Allocation

Fed Funds vs. Forward 10-Year Returns (Advanced 10-Years) When the Fed hikes interest rates, future returns tend to decline. Image: Real Investment Advice

Estimated EPS Impact from a 90bp YoY Increase in Cash Yield Through Interest Income Historically, the S&P 500 tends to do well during Fed hike cycles. Image: BofA US Equity & Quant Strategy

Japan GDP Japan’s economy shrunk at a 6.3% annual rate in late 2019 after sales-tax hike. Image: Financial Times