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 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 […]
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Why Do Interest Rates Affect Stocks
One of the most important factors affecting stock prices is interest rates. Interest rates are a key indicator of the overall health of the economy. When interest rates are high, it can be difficult for companies to borrow money, which can lead to a slowdown in economic growth. This, in turn, can lead to a […]
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17 Min
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