This page shows the average annualised local currency returns of risk assets during hiking cycles since the 1970s. International equities have been a winner in previous Fed hiking cycles while commodities have also performed strongly in the initial 3-month phase as it diversifies against inflation. Cyclicals have historically outperformed defensives while value has also outperformed growth. U.S. credit is a mixed bag, with U.S. high yield (HY) spread returns managing to deliver small positive returns through the hiking cycle while U.S. investment grade (IG) spread returns are negative.