THE BEST ENVIRONMENT FOR STOCKS ISN'T WHAT MOST INVESTORS THINK New research from George Mason analyzed 25+ years of S&P sector performance across Fed rate cycles, per WSJ. The results flip conventional wisdom: When the Fed is RAISING rates: - Avg S&P sector return: +0.76%/mo - Best: Energy (+1.31%/mo), Tech (+1.24%/mo) - Worst: Healthcare (+0.42%), Consumer Staples (+0.38%) When rates are FLAT: - Avg S&P sector return: +1.14%/mo - Best: Materials (+1.52%/mo), Industrials (+1.44%/mo) - Worst: Utilities (+1.00%), Consumer Staples (+1.05%) When the Fed is CUTTING rates: - Avg S&P sector return: -0.31%/mo - Best: Consumer Disc (+0.31%/mo), Healthcare (+0.29%/mo) - Worst: Financials (-1.32%), Energy (-1.00%) - Volatility jumps to 23% (vs 17% in other cycles) Tech delivering 15%+ annual returns during RATE HIKES challenges the idea that growth stocks need cheap money to outperform. The Fed has held rates flat since December. Per the data, that's historically been the best environment for stocks across the board.