We all know that rising interest rates mean falling stock prices. It's been repeated endlessly over the last year with people getting up in arms about the stupidity of the market to be rallying with interest rate hikes.
To elaborate on this, here's the massive interest rate bubble of the 1970s. From 1975 - 1981 US interest rates would go up a whopping 500%!
Here's what SPX did during those years.
It doubled!
It appears people forecasting a prolonged bear market due to "Higher for longer" did not do their backtesting. This has not historically created a bear market in US stocks - they went up 100% last time rates went up 500%.
This is not a bull or bear analysis. I just wanted to let you know. Because the internet told me this was impossible - and clearly it's not. It's not even a good analysis point.
To elaborate on this, here's the massive interest rate bubble of the 1970s. From 1975 - 1981 US interest rates would go up a whopping 500%!
Here's what SPX did during those years.
It doubled!
It appears people forecasting a prolonged bear market due to "Higher for longer" did not do their backtesting. This has not historically created a bear market in US stocks - they went up 100% last time rates went up 500%.
This is not a bull or bear analysis. I just wanted to let you know. Because the internet told me this was impossible - and clearly it's not. It's not even a good analysis point.