Most people believe that when interest rates rise, the stock market falls. But why does this happen? The belief that stocks and interest rates are inversely related is one of the oldest investing maxims around. And for good reason—it seems to hold true most of the time. But there are exceptions to this rule. For […]
Why Interest Rates Affect Stocks
In the most simplistic terms, interest rates are the cost of borrowing money. The higher the interest rate, the more expensive it is to borrow money. This applies to both businesses and consumers. When businesses have to borrow money to finance their operations, they are going to be more reluctant to do so if the […]
Read Time:
18 Min
0
What To Do When Stocks Go Up
When stocks go up, it’s usually a good time to buy. However, there are a few things to keep in mind. First, make sure you have a plan in place in case the stock market takes a turn for the worse. Second, don’t overinvest. Only put as much money into stocks as you’re comfortable losing. […]
Read Time:
13 Min
0
Do Stocks Go Down When Interest Rates Rise
Do stocks go down when interest rates rise? This is a question that has been debated for many years, with no definitive answer. Some people believe that stocks will go down when interest rates rise, as this will lead to a decrease in corporate profits. Others believe that interest rates have little impact on the […]
Read Time:
19 Min
0
0