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The Impact of Interest Rates on Asset Values
The value of every business, farm, apartment house, or economic asset is highly sensitive to interest rates. Investing involves transferring money for future returns, and higher interest rates decrease the present value of these returns. Interest rates have a significant impact on asset prices, acting like gravity on an apple. Low interest rates result in weaker gravitational pull on asset prices. Interest rates play a crucial role in the economic universe, influencing inflation and asset values.