How Interest Rate Hikes Could Lead to a Bear Market

An increase of only 0.50 percent in rates could send stocks down by 20 percent or more

Photo by Ussama Azam on Unsplash

In 1994, the Federal Reserve, led by its chairman Alan Greenspan, surprised markets by aggressively hiking interest rates five times, from 3.00 percent to 5.5 percent. After three consecutive years of rising stock prices, the S&P 500…