By: Dividend Sensei
There’s no denying that one of the biggest worries investors had in 2018, and a big cause of the sharpest correction in a decade, was the Fed hiking rates so aggressively (four times). In fact, the Fed’s December rate guidance and Powell’s comment that the balance sheet roll off was on “autopilot” is largely what caused the S&P 500 to plunge to its December 24th lows (19.8% from the September 20th high).
Well, investors prayer’s have been answered and the Fed has announced its steady rate hike plan is done with. But while Wall Street has reacted with predictable enthusiasm, smart investors know that the world is more complicated than what you hear on CNBC or Fox Business.
So let’s take a look at what the Fed’s plans for interest rates actually are, and more importantly what that really means for your portfolio, both in 2019 and well beyond.