YIS Student Stock Tip of the Month:
Equities Over Bonds
An interesting thing about equities is that it’s possible for them to do well even when the economy does poorly. This is because when there’s a recession, the government lowers interest rates, thereby making bonds less appealing to investors. No one wants a bond that doesn’t pay a healthy amount of interest. As a result, people purchase equities over bonds. Therefore, the stock market can still do well when the economy isn’t doing so well.
Westlake High School, California