Interest rates play a significant role in the investment world. The impact of interest rates on investment returns can be both positive and negative. Lower investment returns generally result from higher interest rates, and vice versa. The cost of borrowing money increases when interest rates rise, which can hinder economic expansion and lessen investor demand. On the other side, when interest rates fall, borrowing becomes more accessible, stimulating economic growth and an increase in the need for investments. Investors should closely monitor interest rates and any potential effects they may have on their investment returns, and they should adjust their investment strategy as necessary.
The impact of interest rates on investment returns
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