Why Growth Stocks Underperform When Interest Rates Rise

By Drift Striker · March 1, 2026

The relationship between interest rates and growth stock performance isn’t theoretical—it’s a structural mechanism that has repeated across decades and will continue to do so. When the Federal Reserve raises rates, growth stocks as an asset class tend to underperform value stocks. This isn’t a prediction or a tendency—it’s a mathematical consequence of how valuations […]