Rising interest rates are bearish, that's what everyone is saying. The reason behind it is actually quite straightforward; lending is getting more expensive, so less to invest, right?
Historically, the FED has had several regimes of rising interest rates, see yellow areas. All the previous regimes didn't really have an impact on the markets. In all the previous hiking cycles on the chart the price ended up higher at the end of the hiking cycle compared to the start.
Based on this chart one could argue that hiking cycles are actually bullish, and that the real bearishness happens once the hiking has stopped or the rates have been lowered.
ðĻBUT THIS TIME IS DIFFERENTðĻ In the current market, we're actually going down during the hiking cycle. Which can mean either of two things: - We will go up and likely make a new all-time high, all while the FED is increasing the interest rates. - We will crash once the FED will stop the rate hikes, causing even more damage because we are already much lower than before the hiking cycle started.
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