History Says Stocks Typically Fall After a Fed Hike Cycle Begins -- Then Gain 6. 8% Within a Year. Here's My Plan

It will likely continue raising them in the near term as it works to get inflation back under control. The S&P 500 Index (SNPINDEX:^GSPC) has historically declined once the Federal Reserve starts raising rates. However, it typically recovers within a year. That's why I plan to capitalize on any near-term weakness by adding to stocks I expect to participate in the eventual recovery. Image source: Getty Images.