Interest rates are a monetary policy tool that central banks use to control the supply of money in the economy. In addition to affecting the overall level of economic activity, interest rates also affect stock prices. When interest rates go up, it becomes more expensive for businesses and consumers to borrow money. This can lead […]
Why Do Higher Interest Rates Hurt Stocks
When interest rates rise, it can be bad news for stocks. Here’s why: 1. Higher interest rates can make it more expensive for businesses to borrow money, which can lead to lower profits and slower economic growth. 2. Higher interest rates can also make it more expensive for people to borrow money, which can lead […]
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15 Min
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Why Do Growth Stocks Underperform When Rates Rise
In general, when interest rates rise, the prices of growth stocks tend to underperform the prices of value stocks. This is because as interest rates increase, it becomes more expensive for companies to borrow money, and investors prefer to invest in companies that are seen as being more financially stable. Growth stocks are typically more […]
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16 Min
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Why Do Rising Yields Hurt Stocks
Rising bond yields can be a sign of an improving economy, as investors become more confident in the future and demand a higher return for lending their money. However, when bond yields rise faster than stock prices, it can hurt the stock market. There are a few reasons why this happens. First, when bond yields […]
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22 Min
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Why Are Stocks So Down
The stock market has been experiencing a downward trend recently, with the Dow Jones Industrial Average (DJIA) and the S&P 500 Index both reaching their lowest points in 2018 on February 5th. This has left many people wondering why the stock market is doing so poorly and whether or not it is a good time […]
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18 Min
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Why Are Higher Interest Rates Bad For Tech Stocks
Interest rates are on the rise, and that’s bad news for tech stocks. Rising rates can put a damper on economic growth, and that can hurt tech stocks. In addition, higher rates can make it more expensive for companies to borrow money, and that could lead to less spending on tech products and services. Finally, […]
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15 Min
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Why Does Inflation Hurt Growth Stocks
Inflation is defined as a sustained increase in the general level of prices for goods and services in an economy over a period of time. It is measured by taking the average price of a basket of goods and services over a period of time. There are a few reasons why inflation can hurt growth […]
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22 Min
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Why Are Rising Interest Rates Bad For Tech Stocks
There is no question that tech stocks have been on a tear in recent years, with the Nasdaq Composite Index up more than 300% since the end of 2011. However, one major headwind that could threaten this rally is the prospect of rising interest rates. Rising interest rates can be bad for tech stocks for […]
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16 Min
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Why Do Interest Rates Affect Tech Stocks
There is a strong correlation between interest rates and the movement of technology stocks. In general, when interest rates rise, technology stocks fall, and vice versa. The reason for this relationship is that technology companies tend to be more sensitive to interest rates than other types of companies. When interest rates go up, it becomes […]
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17 Min
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Why Do Tech Stocks Fall When Yields Rise
It is no secret that the tech sector has been on a tear in recent years, with the likes of Apple, Amazon, and Google all delivering stellar returns for investors. However, one factor that has been working against the tech stocks in recent months is the rise in bond yields. Bond yields have been on […]
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19 Min
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