What Does the Options Market Say About Interest Rates?

Posted On August 19, 2019 1:13 pm
By: admin

Why are investors so fixated on interest rates? If you follow the financial markets regularly, you’ll notice how laser-focused the investment community is on what the Federal Reserve is doing, how bond markets react, and what it all means for interest rates.

But why are interest rates so important? What does a change of a quarter percentage point mean? As a matter of fact, a quarter-point hike or cut in rates is a lot more meaningful than you may have suspected.

The economy is very much driven by interest rates, which is merely another term for the cost of money. The higher… Continue reading on StockNews.com