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 (^GSPC +0.13%) and the narrower, price-weighted Dow Jones Industrial Average (^DJI +0.16%) have both fallen around 3%. Meanwhile, volatility, as measured by the VIX Index (INDEX: ^VIX), 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?
The Fed Ushers In the Return to Fundamentals
By Alex Dumortier, CFA – Jun 23, 2013 at 2:03AM
DJINDICES: ^DJI
Dow Jones Industrial Average
Market Cap
$0.0M
Today's Change
(0.16%) $74.80
Current Price
$46987.10
Price as of November 7, 2025 at 4:41 PM ET
For investors, Wednesday's Fed announcement isn't bad news.
About the Author
Alex Dumortier writes a twice-daily column covering topical subjects from a contrarian, value-oriented perspective; he also co-authored 'The Astonishing Collapse of MF Global'. He received his degree in Economics and Political Economy from Princeton University and began his career in the City of London.
After having lived in several capital cities, Alex now resides in Washington, D.C.. When he is not reading or writing, Alex likes to run and practice Bikram yoga (a form of "hot" yoga.)