With the Fed Funds Rate near zero since late 2008, speculators have been saying that rates have nowhere to go but up. After six years of sideways rates, it is clear to see that the ‘when’ is possibly more important than the ‘where.’ But what does it mean for investors when the rates do go up? It turns out that if those speculators had been right, they may not have seen the big market drop they were looking for. The Fed has had plenty of practice in raising rates significantly in the past and returns have varied during those times, with the average return settling right around the long-term average of all market periods. The Fed Funds Rate is only one small factor in a complex ecosystem rather than a sole driver of performance. A Wealth of Common Sense takes a look at What Happens to Stocks and Bonds When the Fed Raises Rates.