In contrast to many other countries, the U.S. economy doesn’t respond directly to the level of short-term interest rates. Most home borrowers aren’t affected, because they have long-term, fixed-rate mortgages. And, again in contrast to many other countries, many U.S. households do hold a significant amount of their wealth in equities. As a result, they’re sensitive to financial conditions: Equity prices influence how wealthy they feel, and how willing they are to spend rather than save.
The writing is on the wall. Stocks will go down significantly. That doesn't mean you should panic sell everything and sit in cash, but it would be wise to de-risk your portfolio by getting rid companies and thematic ETFs that have been swept up in the bubble. Holding the S&P 500 will be painful enough.
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