A Stock Market Crash Is More Likely as Interest Rates Rise

Jon Banking, Economy, Fiscal Policies, Government, Market Commentary

A stock market crash could be on the horizon as the U. S. Federal Reserve is moving forward with interest rate hikes. During the March FOMC meeting, the Fed hiked rates for the third time in two years.
And according to the CME FedWatch Tool, the markets are expecting at least two more interest rate hikes this year. That will push interest rates above 1% for the first time in nearly a decade.
But the Fed’s actions are coming at a precarious time for the stock market, which has been on a record-breaking run since Donald Trump won the presidency on Nov. 8, 2016. The Dow Jones has shattered the 20,000 and 21,000 levels and notched a record 12 straight days of all-time high closes to end February.
While the soaring highs have undoubtedly been great for investors, many are also worried those highs coupled with ballooning interest rates could lead to a stock market crash in 2017.
No one can ever predict the timing of a stock market crash with certainty. Luckily, there are historical patterns that we can look at to anticipate when the next stock market crash is coming.

This post was published at Wall Street Examiner on March 24, 2017.