on ThursdayCramer noted that when then Fed Chair Alan Greenspan implemented a double rate hike in May 2020, the dotcom bubble had burst two months earlier. The Fed had already raised interest rates five times over the previous 11 months, with the May interest rate concluding the tightening cycle, he said.
The Nasdaq lost 78% of its value from its peak in March of that year to October 2002, with 60% of the loss happening after Greenspan implemented a double rate hike, according to Cramer. The S&P 500 fell 50% from its peak with almost 90% of its decline coming after the rate hike while the Dow Jones Industrial Average went down 39% from its high with 80% of the decrease coming after the hike, Cramer said.
As opposed to… not profitable companies?