TOP WIKIFOLIO TRADE
I have just finished the weekly addition to the portfolio. Even though the federal reserve has announced 3 rate hikes for this year, if we look at the historical correlation of the S&P 500 and the fed's rates we can see that the S&P 500 have reliably achieved new all time highs as rates were gradually increased and only once the fed reaches a rate that is deemed too high by the market, we saw a correction and / or a recession. While this foreshadows an uncertain period of market down-turn in the near future, this of course won't change the overal uptrend of the S&P 500 since its inception and for the sake of this portfolio and investment strategy, will be seen as a period of equity acquisition at discounted prices. In the short-term future however I expect, based on decades of data, it is suggested that we will see the S&P 500 reaching new highs as the rates increase.