How Will Low Interest Rates Impact the Stock Market?
Interest rates have tumbled following the monetary response to the COVID-19 economic crisis. This shift is certain to impact investment portfolios, even those without any bond market exposure. Interest rates heavily influence economic activity, capital flows, and retirement planning, so every investor should understand the mechanics of this new reality.
Economic theory and historical data show that low rates bolster stock prices in the short term, and there may even be secondary or hidden catalysts for equities.
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Source Fool.com
