5 Key Numbers That Drive the Market: How a 4.5% Interest Rate, a 15% Bond Drop, a 33.1% Stock Crash, Gold at $2,075, and a 1,440 USD/KRW Exchange Rate Shape the Economy

📌 Interest Rates, Bonds, Stocks, Gold, and USD – Interconnections Explained

📝 Summary (100 words)

Rising interest rates → Bonds fall, stocks decline, USD strengthens, gold drops.

Falling interest rates → Bonds rise, stocks rally, USD weakens, gold increases.

Real-world cases and numbers help us understand financial market dynamics and make better investment decisions.

📊 How These Assets Are Connected

📌 Change	🏦 Bond Prices	📈 Stock Market	🏅 Gold Prices	💰 USD (Exchange Rate)
📈 Interest Rates Up	📉 Down	📉 Down	📉 Down	📈 Up (USD Strengthens)
📉 Interest Rates Down	📈 Up	📈 Up	📈 Up	📉 Down (USD Weakens)

🔹 1. Interest Rates and Bonds

✔ Why? Higher interest rates make newly issued bonds more attractive, lowering the value of existing bonds.

✔ Case Study:

• 2022: U.S. interest rate surged to 4.5% → Existing bond values declined 📉
• 2023: 10-year bond yield exceeded 5% → Safe assets gained popularity

📌 Personal Experience: In late 2022, I invested in U.S. Treasury Bond ETF (TLT), thinking bonds were safe. But as rates rose, I faced a -15% loss. Lesson learned: higher interest rates devalue existing bonds.

🔹 2. Interest Rates and Stocks

✔ Why? Higher borrowing costs reduce corporate profits and investments.

✔ Case Study:

• 2022: Fed’s rate hikes → S&P 500 -19.4%, Nasdaq -33.1%
• Tesla -70%, Facebook (Meta) -65%

📌 Personal Experience: In June 2022, I bought Tesla at $900. As the Fed raised rates, Tesla crashed to $110. I sold at -50% loss.

🔹 3. Gold and USD

✔ Why? A strong USD weakens gold demand.

✔ Case Study:

• 2020: COVID-19 crisis → Gold hit $2,075
• 2023: USD strength pushed gold below $1,600

🔹 4. Exchange Rates and Exports

✔ Why? A weaker currency makes exports more competitive.

✔ Case Study:

• 2022: USD/KRW hit 1,440 → Samsung exports surged 🚀
• 2023: USD/KRW fell to 1,250 → Foreign investment increased

🔹 5. Interest Rates and Exchange Rates

✔ Why? Higher rates attract foreign investors.

✔ Case Study:

• U.S. rate hikes strengthened the USD → Emerging markets weakened
• Korea’s rate hikes boosted KRW → Foreign capital inflows

📢 Conclusion: Mastering Economic Trends Helps Improve Investment Strategy!

✔ Higher interest rates → Stocks, bonds, and gold decline / USD strengthens

✔ Lower interest rates → Stocks, bonds, and gold rise / USD weakens

✔ A rising exchange rate benefits exporters, while a falling rate attracts foreign investment

Now you can watch the news and understand how the economy moves! 🚀