Specifically, rising prices often lead central banks to boost benchmark interest rates, and the Federal Open Market Committee this week signaled that we could see three 0.25% fed funds rate hikes in 2022. Not surprisingly, in light of these conditions, growth stocks have been hammered on Wall Street. Additionally, growth stocks are often valued based on their expected future cash flows, and rising interest rates reduce the present value of future money. Read More...
Specifically, rising prices often lead central banks to boost benchmark interest rates, and the Federal Open Market Committee this week signaled that we could see three 0.25% fed funds rate hikes in 2022. Not surprisingly, in light of these conditions, growth stocks have been hammered on Wall Street. Additionally, growth stocks are often valued based on their expected future cash flows, and rising interest rates reduce the present value of future money.
