Inflation is bad for growth stocks because it erodes the purchasing power of their earnings. When the cost of goods and services rise, growth stocks see their profits decline in real terms. This makes it more difficult for them to grow their businesses and, ultimately, their stock prices. In addition, inflation can lead to higher […]
Why Does Inflation Affect Growth Stocks
Inflation affects all stocks, but it affects different stocks in different ways. Growth stocks are more likely to be affected by inflation than value stocks. Inflation is a rise in the price level of goods and services. It can be caused by a number of things, including an increase in the money supply, an increase […]
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