Capital Group: Equities have historically averaged 12.7% during rate hikes

American Funds Quiote: Equity markets have historically weathered rising rate periods very well.

In the eight rate-hiking periods since 1977, the S&P 500 Index posted an average annualized return of 12.7%.

Why it Matters: “Don’t fight the Fed” has long been an investment mantra on Wall Street. Historically speaking, rate hikes haven’t been the long-term “equity killer” the quote implies.