Fed Raises Interest Rates--Market Goes Up

Once again the stock market has reacted favorably to moves that many on this board had predicted would induce a stock market crash. Assertions were made over the past several years that the run up in the stock market was largely caused by the quantitative easing policy of the Federal Reserve buying US bonds and once that program was ended the stock market would tank.

A look back on the days that bond buying was eased or tapered shows over the past 18 months or so and the market responded favorably to these maneuvers, and now today the Fed announced they were raising interest rates for the first time in nearly 10 years and the market went up 1.28% (Dow) and 1.52% (NASDAQ).