SFS Insights

Keeping Perspective In Times Like These

November 11th 2022

Our new "SFS Insights" can help you understand the financial markets and navigate through its cycles. A degree of risk and volatility are part of investing, but gyrations in the markets can test even the most seasoned investors. 

  • The headline Consumer Price Index (CPI) rose 7.7% in October over last year and 0.4% over the prior month, better than economists’ expectations of 7.9% and 0.6% (source: Bloomberg).

  • Following a series of 75 basis point rate hikes, investor expectations are for the Fed to begin to downshift hikes to 50 basis points as the Central Bank assesses the lagged effects of higher rates on the economy.

  • In the U.S., history shows that after each of the last rate hikes by the Fed, the S&P 500 Index posted, on average, a gain of almost 15% over the next 12 months since 1970, with gains in eight of the 11 one-year periods following each peak in the federal funds rate.

Stocks on average have posted gains after the last rate hike.

Source: Charles Schwab, Bloomberg data as of 8/11/2022.

Performance measured from day of last rate hike by the Federal Reserve, Bank of England, or ECB/Bundesbank, respectively. Indexes used: U.S. = S&P 500 Index, United Kingdom = MSCI United Kingdom Index, Europe = Europe STOXX 600 Index and the F.A.Z. Index of top German companies prior to the 12/31/1986 inception of the STOXX index. Past performance is no guarantee of future results.

Robert Schermerhorn, CFP® 

Jamie Usas, CFP®

Operations Manager

Amanda Friedman

Wealth Consultant

Andrew Chapman, CFP®

Operations Research Associate

Lauren Bliss

Office Coordinator


Saratoga Financial Services

18 Division Street, Suite 305

Saratoga Springs, NY 12866

Phone: (518) 584-2555


Securities & advisory services offered through LPL Financial, a registered investment advisor, member FINRA/SIPC

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