Why Stocks Go Down When Interest Rates Go Up

The stock market seems to have all its focus on the Federal Reserve today, which seems crazy if you’re investing in individual stocks. But there’s some logic to the Fed focus when you understand how interest rates affect asset values. This video goes through a simple model that shows how higher interest rates can dramatically lower the value of financial assets like stocks and bonds.

10 stocks we like better than Walmart
When our award-winning analyst team has an investing tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

They just revealed what they believe are the ten best stocks for investors to buy right now… and Walmart wasn’t one of them! That’s right — they think these 10 stocks are even better buys.

See the 10 stocks

Stock Advisor returns as of 2/14/21

The Motley Fool has a disclosure policyTravis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he’ll earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Leave a Reply

Your email address will not be published. Required fields are marked *