company is fundamentally sound in those circumstances, and
the market reflects that value. If sales slow, expenses are
higher than expected, or external factors affecting profitability
change in a negative direction, the stock price should go
down. If sales are steady and the company makes no appreciable
gains, the stock may go sideways.
Similar concepts apply to countries and geographic unions. In
very simplified terms, if the companies and citizens in a country
are producing more than they spend and taxes are sufficient to
cover expenses, increased income in the form of tax receipts flows
into government coffers. Because most businesses continually
seek to improve, there is increased competition for money, or
funding, as individuals and businesses borrow money to expand.
An increased rate of borrowing money leads to increases in interest
rates, which will attract capital from investors seeking a
higher yield for their savings and investments and thus cause an
increase in tax receipts. Job growth is healthy when businesses
are spending money to stay competitive. In a healthy worldwide
environment, the stronger an individual country’s economy is,
the more demand there is for stocks and other investments
denominated in that currency, the more pressure there is for
higher interest rates, and the stronger the currency is. Conversely,
the slower the economy is, the more pressure it puts on stock
prices as investors exit investments in search of higher yields and
on central bankers to lower interest rates, further decreasing the
return on investments valued in that country’s currency; in that
case, the country’s currency becomes weaker.
To generalize about the impact of a positive global business
climate, it can be said that higher interest rates mean a stronger
currency and that a weaker currency leads to lower interest
company is fundamentally sound in those circumstances, and
the market reflects that value. If sales slow, expenses are
higher than expected, or external factors affecting profitability
change in a negative direction, the stock price should go
down. If sales are steady and the company makes no appreciable
gains, the stock may go sideways.
Similar concepts apply to countries and geographic unions. In
very simplified terms, if the companies and citizens in a country
are producing more than they spend and taxes are sufficient to
cover expenses, increased income in the form of tax receipts flows
into government coffers. Because most businesses continually
seek to improve, there is increased competition for money, or
funding, as individuals and businesses borrow money to expand.
An increased rate of borrowing money leads to increases in interest
rates, which will attract capital from investors seeking a
higher yield for their savings and investments and thus cause an
increase in tax receipts. Job growth is healthy when businesses
are spending money to stay competitive. In a healthy worldwide
environment, the stronger an individual country’s economy is,
the more demand there is for stocks and other investments
denominated in that currency, the more pressure there is for
higher interest rates, and the stronger the currency is. Conversely,
the slower the economy is, the more pressure it puts on stock
prices as investors exit investments in search of higher yields and
on central bankers to lower interest rates, further decreasing the
return on investments valued in that country’s currency; in that
case, the country’s currency becomes weaker.
To generalize about the impact of a positive global business
climate, it can be said that higher interest rates mean a stronger
currency and that a weaker currency leads to lower interest
การแปล กรุณารอสักครู่..
