One of the market's biggest worries is the first hike of the federal funds rate, which many expect to come this year. But John Stoltzfus, chief market strategist at Oppenheimer, says investors who fret about it are missing the point.
"So long as the pace of rate hikes and the levels of increase in rates are digestible for the markets once they begin, the market has opportunity to recognize that moderate, well-timed rate increases are confirmations of economic growth," Stolzfus wrote to CNBC. "The last 'hike-pause and cut' cycle saw stocks move higher as rates rose, and even after the Fed stopped raising rates and paused."
On the contrary, "It wasn't until the Fed began to cut rates that the markets began their decline. So, it was the cuts, not the hikes, that brought the market down last cycle," he said mischievously.
Stoltzfus furnishes a chart to illustrate what he terms the "Mayan temple effect" (presumably because the chart of the fed funds rate target resembles a Mayan temple).