I may be no economic genius or anything but trying to learn the fundamentals of economics. Now it's time to look at some of them. I just decided to analyze from Get Smarter About Money to know some of these factors that affect the stock market. 1.) Interest rates From what I see, interest rates do affect the stock market. If interest rates are high, that means there is less borrowing since wise business decisions say you DO NOT borrow at a high interest rate. If you are charged with higher interest, it can really affect your profits because you will be charged higher interest. Interest is the charge for borrowing money. It's beneficial to the lender like bank depositors but it is a downside for the debtor. You may earn more money as a depositor and it may be the best time to sell but not the best time to buy. Higher interest rates means share prices may drop soon for buying. 2.) Economic outlook This is based on expanding and contracting. In the face of expansion, d...
Some of my random thoughts from a hyperactive mind!