Dusseldorf There are two major camps of fans in the stock market: those who are betting on growth and those who value a proven business model. These two investment strategies are called growth and value. In recent years, the demand for growth stocks – driven by the tech boom – has been particularly high. This has changed now.
The main reason for this is the rising interest rates, as financial correspondent Ingo Narat explains in the current episode of Handelsblatt Today. Growth stocks lose value due to a discounting effect when interest rates are high. The expert is therefore currently assuming that the value trend can last longer – even if the market corrects itself again: “Should things get really bad on the stock exchanges, the stocks with the greatest interest rate stress are likely to fall more than the value stocks .”
Also: In Berlin, politicians are currently deliberating on the budget for 2024. The Federal Court of Auditors has now intervened and warns of a loss of control. The federal government could become unable to act due to increasing debt. Political editor Martin Greive presents potential savings in the podcast.
More: That’s why investors are betting on cheap stocks after the tech boom
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