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(Flickr/Asher Isbrucker)
Dave Lutz at Jones Trading says a rate hike from the Federal Reserve will be the best thing that happens to the stock market this year.
One big concern around rate hikes is that higher borrowing costs put pressure on company earnings, and ultimately, on stocks.
However, Lutz noted in a client email on Wednesday that investors would see a rate hike as a clear sign that the economy is on the up.
Other analysts have pointed out that stocks have rallied in the months leading up to, and for at least six months after a rate hike.
In a note to Business Insider, Lutz added: "Once the Fed starts raising, the economy is improving – and the market usually looks 9 months ahead. Conversely, when they started cutting the last 2 times – the market tanked (Fed acknowledging weakness)."
The timing for the first rate hike in a decade is still unclear, but there's expectation that the Fed could move at its meeting next month.
Lutz also referenced this chart provided to him by portfolio manager Ryan Detrick, which shows what happened to the S&P 500 the last time the Fed raised rates.
(FRED)
NOW WATCH: KRUGMAN: Wall Street Is Wrong, Janet Yellen Is Making Exactly The Right Move On Inflation More From Business Insider
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Dajin Resources Corp.
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CODE : DJI.V |
ISIN : CA2340671064 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Dajin Res. est une société basée au Canada. Dajin Res. détient divers projets d'exploration au Canada. Ses principaux projets en exploration sont ADDIE 1, ADDIE 2 et COWTRAIL au Canada. Dajin Res. est cotée au Canada. Sa capitalisation boursière aujourd'hui est 103,0 millions CA$ (82,4 millions US$, 73,9 millions €). La valeur de son action a atteint son plus bas niveau récent le 15 mai 2020 à 0,02 CA$, et son plus haut niveau récent le 03 décembre 2021 à 1,13 CA$. Dajin Res. possède 137 360 000 actions en circulation. |