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clock Created with Sketch. 09/01/19
21:43
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Originally posted by StefanF:
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Hey mate I feel your post is rather contradictory. If the US and world economy is slowing, why would you invest in growth stocks? Seems counter-intuitive. Interest rates decrease would be expansionary monetary policy which would be in response to declining economic conditions and by extension reduced inflation rates. Decreased interest rates would be a lagging action and the share market would have dropped substantially before this happens. Additionally, lower interest rates have a positive impact on all shares due to the valuation models using a lower discount rate, this isn't specific to growth stocks but this positive impact is more than offset by slower economy activity.
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Would be true if an economy never changed. If an economy is shifting then some can grow very fast even in a downturn
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