This page shows the average annualized local currency returns of risk assets during previous 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 continues to be an asset class investors gravitate to as a diversifier against inflation. Cyclicals have historically outperformed defensives while value has also outperformed growth. The U.S. credit is a mixed bag, with the U.S. high yield spread returns managing to deliver small positive returns through the hiking cycle while the U.S. investment grade spread returns are negative.