The Federal Reserve begins reducing efforts to stimulate the economy.
Whitney Kisling wrote In an article on Bloomberg.com on 18 June 2013, that ...
"More than $500 billion wiped off the value of U.S. stocks is providing opportunities for investors who remember that equities tend to rise when the Federal Reserve begins reducing efforts to stimulate the economy.
The Standard & Poor’s 500 Index, which has fallen 2.5 percent from its May 21 record, rallied an average 16 percent over two years the last four times the central bank started raising interest rates, according to data compiled by Bloomberg. While the 87 percent gain since December 2008 is the biggest following Fed reductions, the advance hasn’t pushed valuations above historical averages ..." Read more
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