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Interest rates and the stock market generally have an inverse relationship, a dynamic that significantly shapes investment strategies. When interest rates rise, share prices typically fall, and bonds become more attractive. Conversely, the opposite effect occurs when interest rates decrease, with share prices often rising. Why Interest Rates Matter Interest rates directly influence the cost of borrowing. When rates rise, companies face higher borrowing costs, which can lead to reduced investment in growth and innovation. This reduction in investment can strain cash flow and ultimately pressure…

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