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Interest Rate

 

Interest Rate

 

 


Interest rates that are artificially low: For the past few years, interest rates have been at or very close to historically low levels! While it reduced the cost of borrowing, it also decreased the price of margin! Additionally, it meant that investors had fewer options because fixed-income investments like bonds and bank interest lost favor as a result of the low return!

 

 

 

 

3. Cheap Money: Because rates were low, investing became quite popular. Businesses also learned that they could borrow money at cheap interest rates to boost their appeal to potential investors.

 

 

 

 

 

 

 

 

 

 

4. Manipulation/ Day Trading: Larger investors appeared to try to take advantage, by using steps, manipulating, prices – upward, to their advantage! Because of the ease, created, because of the Internet, we have also witnessed, far – more, Day Trading, which, also, tends, to raise the overall,

Stock Markets!