How do Higher Interest Rates Impact Consumer-focused Stocks? #interestrates #stocks

Higher interest rates means higher mortgage payments, so less affordable housing, more expensive car loans, and higher interest on credit card debt. All of these things squeeze the consumer and means they are likely to try and cut spending in other areas of their life.

So for stocks like McDonalds, Walmart and Costco, whose revenues rely almost entirely on consumer spending, rising interest rates could bring about a tougher economic environment. For these business models higher interest rates also simply means that these companies have more expensive financing.

#interestrates #consumerprices #wmt #mcd

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