Ventura Cannabis and Wellness Corp CVHIF

Fed Rate Hike

[StudentR]

The fundamentals of this company should not be affected if the Federal Reserve increases their overnight rate this week.

The interest rate hike affects stocks in two ways:
The companies debt will be charged a higher interest rate. This will lead to the company paying more interest which decreases their earning and future cash flow thus resulting in a lower SP.
Second consumers debt is charged a higher interest rate which means they have less disposable income. Thus, resulting in less spending.

If we look at Convalo's fundamentals they have zero debt and their revenue comes from government and insurance companies. The government and insurance companies paying their revenue will still have to pay for the patients and convalo's revenues should not be affected. 

Thus, this company is a great company to be invested in if you look at the affect of the interest rate hike on their fundamentals.

Overall, in the long term an interest rate hike is good as it means the economy is growing and the federal reserve wants to tighten the cycle to control the inflation rate.

Therefor, this stock is the perfect place to be invested in, both short and long term, wether the Federal Reserve increases the interest rate this week or not.