/biz/ - Business & Finance

$VAXART

Alright Quinsam Capital, you stop heel dragging right now and break out. Your boy Acreage Holdings is up 20%.

>>11395221
It does not work quite as he claimed. USD raises in value with the market because yields are forced to rise with it or become irrelevant.

Rising interest rates hurt bond yields and by extension lower the value of currency. Thats how the government fights inflation, but I'm not sure how his thought process developed.

Maybe he is assuming literally everyone cashes out of the stock market, and then literally everyone puts that money into bonds, but that would cause super inflation and USD would be worth nothing. Gold would resurface and multiply in value several times over, as would land, and any physical asset really.

TLDR: Higher bond yields=Higher stock market value
Higher Interest Rates=Lower bond Yields
Lower stock market=less value on the dollar

I believe we can all be green, even people who have LOADS of money invested in CHINA.