I was just about to comment this lol. During recessions having reserve cash is very very important for companies and many of these next gen stocks that were meant to obliterate the future market have huge current debts and survive on taking bank loans. So as interest rates go up, it will take a huge toll on companies that borrow money from banks coz of the interest rates.
During recession some of these speculative stocks with huge loans might also get permanently burried.
TheSilentSamurai1996 t1_iuc0m7f wrote
Reply to comment by wongyeng888 in Bullish case for growth stocks by lospepes0
I was just about to comment this lol. During recessions having reserve cash is very very important for companies and many of these next gen stocks that were meant to obliterate the future market have huge current debts and survive on taking bank loans. So as interest rates go up, it will take a huge toll on companies that borrow money from banks coz of the interest rates.
During recession some of these speculative stocks with huge loans might also get permanently burried.