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 Do Stocks Fall When Interest Rates Rise
Most people believe that when interest rates rise, the stock market falls. But why does this happen? The belief that stocks and interest rates are inversely related is one of the oldest investing maxims around. And for good reason—it seems to hold true most of the time. But there are exceptions to this rule. For […]
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20 Min
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Why Do Higher Interest Rates Hurt Tech Stocks
In recent months, the tech-heavy Nasdaq Composite Index has slumped as interest rates have risen. One key reason: higher rates make it more expensive for companies to borrow money, and big tech firms tend to do a lot of borrowing. Rising rates also make it more expensive for people and institutions to buy stocks and […]
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17 Min
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How To Read A Bond Market Etf
How to read a bond market ETF When it comes to investing, there are a variety of different securities to choose from. One type of security that is often overlooked is an exchange-traded fund, or ETF. ETFs can be found in a variety of different markets, including the bond market. Bond market ETFs are a […]
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21 Min
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What Does Interest Rate Hike Mean For Stocks
The Federal Reserve has increased interest rates for the third time this year, and investors are wondering what this means for the stock market. The Fed’s decision to hike rates is a vote of confidence in the economy. The central bank believes that the economy is strong enough to handle higher interest rates, which should […]
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19 Min
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Why Do Higher Interest Rates Hurt Stocks
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 […]
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15 Min
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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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16 Min
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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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16 Min
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Why Do Stocks Drop When Interest Rates Rise
When it comes to investments, there are a variety of factors that can influence how a particular stock performs. One such factor is interest rates – and specifically, how they affect stock prices. Many people assume that when interest rates rise, stock prices will automatically drop. But is this really the case? In order to […]
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16 Min
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Why Are Utility Stocks Down
It’s been a tough year for utility stocks, with the sector down more than 10% as of early November. So, what’s behind the sell-off? There are a few factors at work. For one, interest rates have been rising, which makes utility stocks less attractive compared with other sectors. In addition, the Trump administration has been […]
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15 Min
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