The Rate Hike Rorschach Test: Bulls and Bears Square Off Over Year End Rally Odds The Federal Reserve's decision to raise interest rates this week has reignited the debate over whether the impending rate hike will spell doom for stocks or merely be a speed bump on the way to a strong finish.
Some experts warn that higher borrowing costs will squeeze corporate margins and consumer spending, while others point to historical precedent as evidence that this year's rate hike will be just another blip on the radar.
The so called September Effect – which has stocks performing poorly in the month due to factors such as tax loss selling and back to school expenses – is once again a concern.