# Wells Fargo Investment Institute Says Stocks Gained in Last Six Fed Hike Cycles

By Enna Lee

Canonical URL: https://www.tokenpost.com/news/investing/47931
Published: 2026-11-03T18:53:13.000Z
Updated: 2026-11-03T18:53:13.000Z
Section: Investing

> Emerging markets led three cycles, commodities two and developed markets outside the U.S. one; no asset class outperformed consistently.

U.S. stocks finished higher in each of the last six completed Federal Reserve rate-hike cycles reviewed by Wells Fargo Investment Institute, while results across other asset classes varied.

Emerging markets led in three cycles, commodities in two and developed markets outside the U.S. in one. No asset class outperformed consistently across all six cycles.

The institute recommends diversified portfolios instead of major allocation changes based only on expectations for Fed policy. Its favored areas include U.S. large-cap quality stocks, emerging markets over developed markets outside the U.S., short-term U.S. securities and commodities for diversification.