Zusammenfassung:Higher interest rates tend to negatively affect earnings and stock prices (with the exception of the financial sector). Higher interest rates also mean future discounted valuations are lower as the discount rate used for future cash flow is higher.
Higher interest rates tend to negatively affect earnings and stock prices (with the exception of the financial sector). Higher interest rates also mean future discounted valuations are lower as the discount rate used for future cash flow is higher.
Interest rates are dictating the flow of not only economies, but businesses as well, so a wise trader would pay attention either way. In order to get more insight about the and other trading articles, FreshForex is one of the brokers offering free webinars for traders to join and learn free from expert. Recently on 27th July, 2022 at 12:00 GMT, the broker had organised webinars which they also discussed more on the topic “ HOW INTEREST RATES AFFECT PRICES OF COMPANIES'S SHARES”. Which you can visit their website to find out.
During webinars, FreshForex analyst has answered some questions regarding the market situation and comment on the latest news. If you missed the previous webinars, you can always find them in their website.