Tag: borrow money which

Why Utilities Stocks Are Down

Utilities stocks have been on a downward trend recently. Here are three reasons why: 1. The Federal Reserve is raising interest rates The Federal Reserve has been raising interest rates since December 2015. This increase in interest rates makes it more expensive for utilities companies to borrow money, which can lead to lower profits. 2. […]

Why Are Growth Stocks Sensitive To Interest Rates

Growth stocks are companies that are expected to experience higher than average growth in revenues and earnings. They are often characterized by high price-to-earnings (P/E) ratios and are considered to be more risky than value stocks. One reason why growth stocks are sensitive to interest rates is because a higher interest rate environment can make […]