Below is a look at the performance of the S&P 500 and its ten sectors since 1) the last time the Fed hiked rates on 6/29/06, and 2) interest rates went to 0% on 12/16/08. These exercises don’t provide much in the way of forward projections, but they can be interesting nonetheless.
As shown, since the Fed (Greenspan’s Fed) last hiked rates on 6/29/06, the Health Care sector is up the most at 137%, followed by Consumer Discretionary at 131% and Technology at 118%. The S&P 500 as a whole is up 56.9%, while the Financial sector is the only one that’s down with a decline of 27.4%.
Since the Fed implemented ZIRP and went on hold beginning on 12/16/08, the S&P 500 is up 118.7%. The Consumer Discretionary sector is up the most with a gain of 255%, while the Energy sector is up the least with a gain of 19.2%.
Over the last 9+ years since the Fed last hiked rates, exactly 20 stocks currently in the Russell 1,000 have been 10-baggers (up 1,000% or more). The best performing stock has been Priceline Group (PCLN) with a gain of 4,285%, while other notable 10-baggers include Netflix (NFLX), Keurig Green Mountain (GMCR), MasterCard (MA), Amazon.com (AMZN), Apple (AAPL) and Chipotle (CMG).