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 Growth Stocks Underperform When Interest Rates Rise
Investors tend to shift their investment focus towards value stocks when interest rates rise. This is because value stocks typically offer a higher dividend yield and are perceived as being less risky than growth stocks. Growth stocks are companies that are expected to experience rapid growth in earnings and revenue. They typically have higher valuations […]
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Why Do People Invest In Stocks And Bonds
People invest in stocks and bonds for a variety of reasons. Some people invest in stocks because they want to make money in the stock market. Others invest in stocks as a way to save for retirement. Some people invest in bonds because they want to receive a regular income from those bonds. Others invest […]
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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 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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18 Min
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When Interest Rates Rise What Happens To Stocks
When Interest Rates Rise What Happens To Stocks As the Federal Reserve continues to hint at an interest rate hike later this year, investors are trying to figure out what it will mean for the stock market. History shows that when interest rates go up, stocks tend to go down. Over the past 20 years, […]
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15 Min
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What Does Higher Interest Rates Mean For Stocks
The Federal Reserve’s decision to raise interest rates for the first time in almost a decade is a sign that the economy is on the upswing. But what does it mean for stocks? The stock market has been on a tear in recent years, with the Dow Jones Industrial Average reaching new heights. But some […]
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20 Min
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