XP transforms from “hot thing” into “cold case”, says British newspaper

The newspaper, in its column Lex (🚥🇬🇧), states that the online brokerage owes much of its success to the period of sharp drop in interest rates in Brazil, whose Central Bank cut its base rate, the Selic, from 14,25% in 2016 to just 2% in March last year. Now, the rate has risen again to 13,75%.

When XP shares were launched on the Nasdaq stock exchange in the United States in December 2019, they rose almost 30%. Over the next two years, it reached highs of $50. Currently, the stock is at its lowest level of $16,50.

The FT states that XP offered more attractive assets, such as shares or corporate debt. “With the interest rate back at 13,75%, there are fewer reasons to buy riskier assets,” he says.

Interest: do you know what it means? And how do they affect your daily life?

Interest is present in different forms of payments and investments and you may not even know they exist, but they certainly affect your daily life. Just a quick hint: interest rates define the relationships between savers and consumers, and are the 'time value of money'. Know more!