In order to understand the difference between value and growth stocks, it is first important to understand the concept of a stock. A stock is a piece of paper that represents a portion of a company. When you buy a stock, you are buying a share in that company. Stocks can be bought through a […]
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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