Market Review and Trends
Are Low Interest Rates Good for Stocks?
By The Smart Investor  •  September 28, 2020
COVID-19 is the gravest health threat to emerge around the globe in the last hundred years. Not only is this virus a health crisis, but it has also morphed into an acute financial crisis as entire industries are impacted and economies are hit badly. The difference now is that countries are equipped with central banks, which can act to prop a country’s economy up using both monetary and fiscal stimuli. During this crisis, numerous countries have taken the drastic step of cutting interest rates to boost economic growth. Colombia’s central rate has cut rates seven times in a row to a record low of 1.75%, while Mexico has recently cut its rates for the eleventh consecutive time to 4.25%. In the US, the Federal Reserve has slashed rates to rock-bottom levels and maintains that they will stay “lower for longer” until inflation hits 2% and a wider economic recovery is seen....
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By The Smart Investor
The Smart Investor is co-founded by David Kuo, Joanna Sng, and Chin Hui Leong. The company was formed in late 2019 from the ashes of the Motley Fool Singapore. The Smart Investor believes that everybody can learn how to invest, smartly. We aim to educate people on how to invest smartly by providing investing education, stock commentary and market coverage for Singapore and around the world.
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