The S&P 500 has historically delivered its strongest returns when the Federal Reserve leaves interest rates unchanged, according to HB Wealth strategist Gina Martin Adams. Data going back to 1990 show stocks often outperform during Fed pauses.
The S&P 500 has historically delivered its strongest returns during periods when the Federal Reserve keeps interest rates unchanged, rather than when it is actively raising or lowering borrowing costs. That is the reading from Gina Martin Adams, Chief Market Strategist at HB Wealth, whose note ties the index's best performance to Fed pauses.
The pattern draws on a long record. S&P 500 data since 1990 show stocks often outperform when the Fed pauses, rather than when it is actively changing borrowing costs.
The State Street SPDR S&P 500 ETF Trust, which tracks the index, last changed hands at $751.97, down 0.39%.
Source: Seeking Alpha (snippet-based)
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