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S&P 500 (SPX)

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5,049.93
-11.89(-0.23%)
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I still do not understand how rate hike is good for all stocks in the index. Could anyone please explain?
A rate hike is never good for the economy. Rate hikes always end in recession. Always. What's worse is that the rates must be hiked this time not because of economic strength, but because rates just need to go up so that they can go down again during the next crisis. Rates also need to go up to suppress inflation of stock market prices.
Rate hikes help banks and allow them to free up cash by lending at a decent rate. it also shifts riskier bets back towards bonds. Shifts the riskier bets back to bonds and makes it more competitive against stocks. Brings rates close to normal range where the FED can once again use rate reduction as a tool to fight economic distress.
Ridiculous statement not backed by facts. Rate hikes and reductions have the exact same long term affect, to try and reduce excesses. Rate hikes at these levels is mandatory and does not hurt economy. Leaving it below normal will hurt economy. Capitalism is not a simple easy formula and needs governments to control free markets excesses.
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