DON'T FRET ABOUT THE FED

摘要

There is a spreading fear that we are in for a period of tightening by the Federal Reserve Board. It has gotten to be obsessive. On a recent round of New York media interviews, I encountered two almost unanimous views: that the Fed would hike rates later this year, and that Barack Obama would be elected President. Both events are viewed as all but certain, and as all but certain to do great damage to the stock market.rnPut aside your fears. The market will recover. It is presumed that increases in the Fed's target rate for overnight loans are bad for stocks because high interest rates make the future earnings from corporations less valuable today. But the connection is not so neat.