From the course: Economic Tips for Everyone

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Markets are interrelated

Markets are interrelated

From the course: Economic Tips for Everyone

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Markets are interrelated

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- Maybe you've heard the phrase, "No person is an island." Well, the same thing's true for financial markets. They're all a bit interrelated. Bonds and equities, industrial metals prices and interest rates, gold and the dollar. This means that whether you're putting together a business strategy or planning how to make your own personal investments, it's important to keep in mind that these markets are interrelated and they can impact each other. Gold prices typically move inversely to the dollar. That means a stronger dollar usually weighs on gold prices, while a weaker dollar supports gold prices. Interest rates and the dollar also tend to move inversely, and equities and bond prices usually move inversely. Industrial metals prices and interest rates also tend to move inversely. So when interest rates fall, capital intensive industries like manufacturing strengthen, and industrial metals prices rise. But when…

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