The left hand chart illustrates the performance of the S&P 500 around the timing of the last rate hike from the Federal Reserve. The market performance can vary wildly from the strong run in 1995 to the continued selling in 2000 and the tech bubble. Overall, the end of the rate hiking cycle should be positive for equities. The right hand chart shows the relationship between earnings, equity prices and recessions. The decline in earnings has been small compared to the decline in prices, suggesting the market discounting further falls. However, earnings typically decline further in a recession highlighting the risk to equities.