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    A friend of mine was asking about the stock market and why it’s been so lousy lately. A large part of it has to do with the Federal Reserve raising Interest Rates. So why does this make the stock market go down? Why should you care?

    Basically the Federal Reserve is trying to keep people working, while keeping inflation low. It’s a sort of balancing act. They do this by raising and lowering Interest Rates.

    When interest rates are low (think 2001-2004), money is easy to get. We (as a nation) typically go out and buy big homes, big screen TVs, and new cars. We spend the money. But, if this goes on too much, companies figure out they can start charg

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    serve raising Interest Rates. So why does this make the stock market go down? Why should you care?

    Basically the Federal Reserve is trying to keep people working, while keeping inflation low. It’s a sort of balancing act. They do this by raising and lowering Interest Rates.

    When interest rates are low (think 2001-2004), money is easy to get. We (as a nation) typically go out and buy big homes, big screen TVs, and new cars. We spend the money. But, if this goes on too much, companies figure out they can start char

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    ve is trying to keep people working, while keeping inflation low. It’s a sort of balancing act. They do this by raising and lowering Interest Rates.

    When interest rates are low (think 2001-2004), money is easy to get. We (as a nation) typically go out and buy big homes, big screen TVs, and new cars. We spend the money. But, if this goes on too much, companies figure out they can start char

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    Interest Rates.

    When interest rates are low (think 2001-2004), money is easy to get. We (as a nation) typically go out and buy big homes, big screen TVs, and new cars. We spend the money. But, if this goes on too much, companies figure out they can start char

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    big homes, big screen TVs, and new cars. We spend the money. But, if this goes on too much, companies figure out they can start charging a lot more for that home or car. This happened in the housing market recently as interest rates were historically low. Home prices were rising at historical rates. This is called inflation. When it kicks in, soon you find your dollar doesn’t go very far. After all, who wants their paycheck to only buy ? of what it did a year ago?

    The Stock Market hates higher interest rates because let’s face it. If I can get a 6% rate of return in a savings account why would I risk investing in a company? The company has to pay me

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