|Why rate hikes are good news for stocks|
|News - St Augustine Area & St Johns County|
NEW YORK ó Itís no surprise that the prospect of a Federal Reserve rate hike worries stock investors.
The Fedís unprecedented economic stimulus has in large part driven a surge in stock prices since 2009. The central bank has bought trillions of dollars of bonds and kept short-term interest rates close to zero. Thatís allowed businesses and consumers to refinance their debt at lower rates, freeing up cash to spend.
But if history is a guide, investors have nothing to fear.
Read entire article: Why rate hikes are good news for stocks