Fed Raises Rates--12/18/15
Well, the Fed, FINALLY, raised interest rates. And in 2015 market style, the trendless volatility continued. A few days prior to the hike, the markets sold off. Only to rally right before the hike and on the day of the hike. Only to see them sell off in the next few days.
We've got a whole lot of moving and shaking, but the market is, basically, going nowhere.
And, frankly, I think this makes sense. Markets sold off because interest rates moving higher means that the pricing within the markets need to be adjusted. And I don't mean just stock markets; bond markets, mortgage markets, currency markets, commodity markets, all markets. And, of course, the Fed didn't jump out and surprise anyone when they hiked...because they've been telegraphing it for quite sometime...and hiking sends a signal that the economy is strong enough to handle higher rates. So, the S&P 500 moved higher. But when that stuff settles down, the markets still need to re-price things based on higher rates...so they sell off a bit more.
Long story short, trendless volatility continues!