The Fed Ushers In the Return to Fundamentals

The outcome of the Fed's FOMC meeting on Wednesday sparked a downdraft in stock and bond markets worldwide. Since Tuesday, the S&P 500 and the narrower, price-weighted Dow Jones Industrial Average have both fallen around 3%. Meanwhile, volatility, as measured by the VIX Index has shot up to its highest level year to date.

In the following video, Motley Fool contributor Alex Dumortier asks: Given markets' short-term reaction to the news, is the Fed's announcement detrimental to equity investors?

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Fool contributor Alex Dumortier, CFA has no position in any stocks mentioned; you can follow him on LinkedIn. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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