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 […]
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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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 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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When Stocks Go Down Bonds Go Up
When stocks go down, bonds go up. It’s an age-old investing adage that’s held true for generations. So why do stocks and bonds move in opposite directions? It all has to do with risk. When stocks go down, it means the market is riskier. Investors are selling off their shares in favor of less risky […]
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14 Min
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How Interest Rates Affect Stocks
Interest rates are one of the most important factors affecting stock prices. When the Federal Reserve changes interest rates, it can cause stocks to go up or down. One reason interest rates affect stocks is that when interest rates go up, it becomes more expensive for companies to borrow money. This can lead to a […]
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17 Min
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What Do Rate Hikes Mean For Stocks
When the Federal Reserve Board (Fed) hikes interest rates, what does that mean for stocks? The Fed is the central bank of the United States. Its primary responsibility is to promote maximum employment and price stability. In order to achieve these goals, the Fed uses a variety of tools, including interest rates. When the Fed […]
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21 Min
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