If you’re selling stocks because the Fed is hiking interest rates, you may be suffering from ‘inflation illusion’

Forget everything you think you know about the relationship between interest rates and the stock market. Take the notion that higher interest rates are bad for the stock market, which is almost universally believed on Wall Street. Plausible as this is, it is surprisingly difficult to support it empirically.

It would be important to challenge this notion at any time, but especially in light of the U.S. market’s decline this past week following the Fed’s most recent…

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