This is a nice interesting statistic to be told......if this holds true that means the market could be headed for its first full correction in over 5 years!!!!
Market drops 6 months before rate hikes
Start Date
End Date
% Drop
2/2/1946---- 2/26/1946----
10.2
3/4/1955---- 3/14/1955-----
6.8
9/25/1967----3/5/1968----
10.1
11/29/1968-----5/26/1970----
36.1
4/28/1971----11/23/1971----
13.9
1/11/1973----10/3/1974----
48.2
9/22/1980---9/29/1980----
5.3
10/10/1983----7/24/1984----
14.4
8/25/1987-----12/4/1987----
33.5
2/2/1994-----4/4/1994----
8.9
2/18/1997-----4/11/1997----
9.6
5/13/1999----5/27/1999----
6.3
2/11/2004-----8/12/2004----
8.2
Median Drop10.1
Source: S&P Capital IQ
"The equity market's response to the increased likelihood of a June rate hike indicates just how nervous Wall Street is toward rate-tightening actions by the Federal Reserve. History explains why," he said in a note.
In the 16 instances since World War II that the Fed has started a tightening cycle,
the market has fallen on 13 of the those occasions in the six months prior to rate hikes. Those moves have been as severe as the 48.2 percent bear market drop in 1973-74, and as mild as the 6.3 percent pullback in 1999. There were four bull-blown corrections and three bear markets.
http://www.cnbc.com/id/102488591