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Interest Rate Cuts Could Be a Catalyst for Growth Stocks: 2 Stocks to Buy and Hold
SHOPShopify(SHOP) The Motley Fool·2024-10-06 14:05

Both stocks are riding the wave of industries with powerful long-term tailwinds.Interest-rate cuts are often perceived as good for equities for at least two reasons. First, since lower interest rates make it easier for companies to borrow money, they can help spear business growth. Second, lower interest rates mean fixed-income assets, like bonds, lose some of their appeal compared to stocks, so many investors switch over to and bid up equities.The relationship between interest rates and the stock market is ...