What to expect from US stocks before and after the Fed's rate rise

History suggests investors should be optimistic for the long term but would be wise to exercise short-term caution.

Last week the Federal Open Market Committee surprised a lot of pundits by doing what it has said it would do.

The FOMC announced a further reduction of its extraordinary bond buying program -- quantitative easing, or QE3 -- in which the central bank adds liquidity by purchasing Treasuries and mortgage-backed securities.


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