The Federal Reserve Has a Glorious History of Hurting Investors

The U.S. central bank tends to raise interest rates too high, causing recessions and stock market declines

by Nigam Arora
Market Watch

Investors would have to be stupid to ignore the Federal Reserve’s history of causing pain.

But that is exactly what momentum investors are doing now. History repeats itself, but human nature being what it is, many investors do not learn.

Let us explore, starting with a chart that spans 64 years. Please click here for an annotated chart of the federal funds rate. Please notice the following from the chart:

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