On the other hand, lower rates means companies can access cheaper debt, which they can use to fuel growth. This is good for fast-growing companies with low or non-existent profits as they can use cheap debt to expand and become profitable.
It could also be positive for stocks because it increases the value of future earnings relative to the lower yields on offer from the bond market. This means it is more worthwhile owning stocks than bonds for future income, which pushes up share prices.
Adrian Lowcock, of fund shop Willis Owen, recommended the £1.2bn Merian UK Smaller Companies fund for investors looking to profit from lower interest rates.
Mr Lowcock said negative rates would be good news for companies with lots of debt, such as airlines and retailers. Utilities such as Severn Trent and National Grid are also packed with debt so may see profits rise if rates go minus, with business models largely unaffected.
A negative rate is also positive for gold. One of the criticisms of the precious metal is that it does not yield anything, but in a world of negative interest rates this becomes a positive.
Gold miners are a good way of getting exposure to the gold price. Mr Lowcock recommend the £1.8bn Blackrock Gold and General fund.
Negative rates would be bad news for bank shares as their profit margins would decrease. Banks make money by lending at higher interest rates than the rate they get on their own cash reserves. When the Bank of England cuts rates, the returns on their cash drops, which affects profits.
So called “value” stocks, which are cheap relative to their earnings but offer limited growth potential, will continue to perform poorly if rates go negative, according to Mr Perdon.