From DailyWealth
400% Gains When the Fed Hikes Rates
By Dr. Steve Sjuggerud
Friday, September 19, 2014
The last time the Fed hiked interest rates, the investment I'll share with you today soared nearly 400%.
Most people think that you can't make money once the Fed starts raising interest rates.
They're wrong...
The last time the Fed hiked rates was from 2004 to 2006... Interest rates went up from 1.00% to 5.25%.
While most people thought higher rates would kill U.S. stock prices, the opposite happened, as I explained in this DailyWealth.
In short, the U.S. stock market soared from below 1,000 in 2003 to more than 1,500 in 2007 – a move of more than 50%.
Of course, stocks eventually crashed as the Global Financial Crisis hit in 2008. But importantly, stocks did NOT crash when the Fed started raising rates. The crash happened years later. From 2003 to 2007, smart U.S.-stock investors stayed in stocks when the Fed was raising interest rates, and they reaped big rewards.
However, the biggest gains didn't come here in the U.S...
They came overseas. More specifically, they came from emerging-market stocks.
Most investors aren't aware of it, but emerging-market stocks dramatically outperformed U.S. stocks from 2003 to 2007 – a period that included the rising interest rates of 2004 to 2006 – rising by nearly 400% percent:
Read more from DailyWealth >>
400% Gains When the Fed Hikes Rates
By Dr. Steve Sjuggerud
Friday, September 19, 2014
The last time the Fed hiked interest rates, the investment I'll share with you today soared nearly 400%.
Most people think that you can't make money once the Fed starts raising interest rates.
They're wrong...
The last time the Fed hiked rates was from 2004 to 2006... Interest rates went up from 1.00% to 5.25%.
While most people thought higher rates would kill U.S. stock prices, the opposite happened, as I explained in this DailyWealth.
In short, the U.S. stock market soared from below 1,000 in 2003 to more than 1,500 in 2007 – a move of more than 50%.
Of course, stocks eventually crashed as the Global Financial Crisis hit in 2008. But importantly, stocks did NOT crash when the Fed started raising rates. The crash happened years later. From 2003 to 2007, smart U.S.-stock investors stayed in stocks when the Fed was raising interest rates, and they reaped big rewards.
However, the biggest gains didn't come here in the U.S...
They came overseas. More specifically, they came from emerging-market stocks.
Most investors aren't aware of it, but emerging-market stocks dramatically outperformed U.S. stocks from 2003 to 2007 – a period that included the rising interest rates of 2004 to 2006 – rising by nearly 400% percent:
Read more from DailyWealth >>
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