Interest Rate Cuts Could Be a Catalyst for Growth Stocks: 2 Stocks to Buy and Hold

Interest-rate cuts are often perceived as good for equities for at least two reasons. First, since lower interest rates make it easier for companies to borrow money, they can help spear business growth. Second, lower interest rates mean fixed-income assets, like bonds, lose some of their appeal compared to stocks, so many investors switch over to and bid up equities.The relationship between interest rates and the stock market is complex and not set in stone, but equities could benefit from the U.S. Federal Reserve Bank's recent aggressive interest-rate cut. Growth stocks, in particular, performed splendidly in the 2010s, marked by historically low interest rates.Could the same phenomenon repeat itself? Let's consider two stocks to invest in if it does -- or even if it doesn't: Shopify (NYSE: SHOP) and Adyen (OTC: ADYE.Y).Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool