Investors are in a tight spot. They're concerned about the election and a potential correction in equities. Recent market pessimism hasn't helped. The Dow Jones Industrial Average and S&P 500 hit four-month lows this week, and the S&P just recorded its longest consecutive days-negative stretch since 2011.
But most investors and traders seem to agree that after not raising rates on Wednesday, the Federal Reserve will keep with expectations and finally hike rates after its December meeting.
Gross domestic product data released in late October showed the U.S economy growing at 2.9 percent, higher than expected. The Fed suggested in its statement on Wednesday afternoon that the case for a rate hike was getting stronger. Rising inflation has also strengthened the case for a rate hike by the Fed.
So where does an investor put their money to combat concerns that both bond and stock prices could fall as the market inches closer to Fed action, and as the market tries to move past a rate hike and into 2017? Looking at some of the half-truths offered to investors about Fed-fighting moves can help. Here are four. These aren't investing myths, but they fall short of giving investors all the information they need to make smart decisions.