Cryptocurrencies are often seen as a safe-haven investment, as they are not tied to traditional financial systems. However, what happens to crypto when interest rates rise? Cryptocurrencies are not immune to the effects of interest rates. When interest rates rise, the value of cryptocurrencies usually falls. This is because investors can earn a higher return […]
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 […]
Read Time:
15 Min
0
Why Are Bank Stocks Falling
Bank stocks have been falling for the last few weeks, with the S&P Bank Index dropping by more than 5% since the beginning of September. The cause of the decline is not entirely clear, but there are a few possible explanations. The first possibility is that the sell-off is due to concerns about the health […]
Read Time:
16 Min
0
Why Do Bond Yields Affect Tech Stocks
There is a strong correlation between bond yields and stock prices, and this is particularly evident in the technology sector. So, why do bond yields affect tech stocks? The most common explanation is that when bond yields go up, it becomes more expensive for companies to borrow money, and this can lead to a slowdown […]
Read Time:
14 Min
0
How Do Bank Stocks Do When Interest Rates Rise
As the Federal Reserve continues to normalize interest rates, some investors may be wondering how bank stocks will perform. Bank stocks can be sensitive to movements in interest rates, as higher interest rates can increase the cost of funding for banks. However, bank stocks can also benefit from rising interest rates, as they can lead […]
Read Time:
16 Min
0
What Etf Is Good For Rising Interest Rates
What Etf Is Good For Rising Interest Rates When interest rates are rising, investors may want to consider investing in exchange-traded funds (ETFs) that track bond indexes. This is because when interest rates rise, bond prices fall. So, by investing in an ETF that tracks a bond index, investors can minimize the impact of rising […]
Read Time:
18 Min
0
Why Do Treasury Yields Affect Tech Stocks
Investors have long observed a correlation between movements in Treasury yields and stock prices. The reasoning is that if Treasury yields rise, it becomes more expensive for businesses and consumers to borrow money, and this could lead to a slowdown in economic growth. As a result, investors may sell stocks and buy Treasuries, which are […]
Read Time:
19 Min
0
What Does Rate Hike Mean For Stocks
When the Federal Reserve raised the interest rates on Wednesday, December 14th, 2016, it was the first time since 2006. The hike was in response to the improving economic conditions in the United States. The Fed’s move signaled a vote of confidence in the American economy and indicated that the Fed expects to continue to […]
Read Time:
19 Min
0
Why Interest Rates Affect Stocks
In the most simplistic terms, interest rates are the cost of borrowing money. The higher the interest rate, the more expensive it is to borrow money. This applies to both businesses and consumers. When businesses have to borrow money to finance their operations, they are going to be more reluctant to do so if the […]
Read Time:
18 Min
0
What Happens To Preferred Etf In Falling Markets
What Happens To Preferred Etf In Falling Markets Preferred stock ETFs are designed to provide investors with a steady income stream, and they are not as volatile as traditional stocks. However, when the stock market falls, even preferred stock ETFs can be affected. The value of a preferred stock ETF may decline along with the […]
Read Time:
17 Min
0
0