You would think that the current market environment would scare most investors. After all, the Fed has just made a gigantic interest rate jump of 0.75 percentage points, which would have caused a tremor on the markets in previous years. However, anyone who looked at share prices, for example on the Dow Jones, the day after the Fed's decision, was forced to realize: Investors struck, and not in short supply. This raises the question: Is this wise?

The short answer: yes. Because we have seen the current development on the markets and in the economy time and again over the past few decades. First, inflation rates rise due to a strong economy, whereupon the central banks intervene and raise interest rates, causing share and bond prices to fall. In addition, the cost of credit for companies increases, the attractiveness of bonds rises and that of shares falls. A few steps further on comes what economists like to warn against: recession.

The inclined investor could now draw the conclusion from this observation that it would be wise to sell shares at the present time, as falling prices are to be expected. But that would be too short-sighted. What all recessions have in common is that the stock markets rise again even before the economy reaches its low point and from their low point to the economic recovery in the three quarters following the economic low point have generated price gains of 23% to 64% - and that in less than 15 months. That is why it is now advisable to buy shares again instead of selling them. You could say: the share is dead, long live the share.

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