For the past two years, the stock market has been rising, and even in the pandemic, it also faced the recent U.S election, which is considered one of the worst elections in U.S history, and as of now, it is facing Russia Ukraine war.
According to the past US has experienced more volatility in the rise of rates; in the past 8 hiking years, at the first-ever increase, the S&P500 was higher, proportion to LPL.
Performance of sector
The fed has reached 4 different hike cycles in the past 30 years, and none have seen the equity. Due to faster rate increase on prospects having made a wild swing in the technology, S&P cycles have seen a gain of nearly 21% before securities of strategies. Sector outperforming doesn’t affect leadership in every 4 instances.
The dilemma of oil stocks
Oil prices are rising due to rate hikes, due to Russian Ukraine war, Russia is threatening to increase the price of crude oil globally, from the mid-1970s the oil shocks are facing economic downturns, but after 9/11 in 2001 and the financial crisis of 2008 and that was the reason of the rise of crude oil globally.
Volatility of midterm
Investors are facing another problem this year, the election of the US in November, due to uncertainty market is going to be muted, and effects are subsequent on the political changes. Still, at the end of the year, the stock will post a rally.