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Learn (Economics)

Learn (Economics) · Course

Economics for Investors: From Basics to Expert

From the basics of economics to interest rates, inflation, exchange rates and employment, and how they connect to stocks. Build up step by step and develop the eye of an expert who can read the market on your own.

43 lessons in total43 published0 read
Start with Lesson 1
1

Part 1 · Lessons 1–6 (6 lessons)

Getting familiar with the economy

Understand why stock prices and the economy are connected, and grasp the big flows of the economy (circular flow, GDP, business conditions) through diagrams.

01Part 1Getting familiar with the economy

Part 1 · Lesson 1 · 14 min

Know the economy and you can see stock prices

Stock price = earnings × multiple (P/E). The economy shakes both of these knobs.

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02Part 1Getting familiar with the economy

Part 1 · Lesson 2 · 13 min

The economy is a big circle of money

See in a diagram how four agents (households, businesses, government and the rest of the world) exchange money and goods.

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03Part 1Getting familiar with the economy

Part 1 · Lesson 3 · 14 min

Prices are set by supply and demand

Learn how prices move through supply and demand curves and the memory chip price cycle.

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04Part 1Getting familiar with the economy

Part 1 · Lesson 4 · 14 min

GDP is the report card of a nation's economy

Read nominal and real GDP, growth rates, and the breakdown into consumption, investment, government spending and net exports.

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05Part 1Getting familiar with the economy

Part 1 · Lesson 5 · 14 min

The economy has four seasons too

See the business cycle of recovery → expansion → slowdown → recession over real data.

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06Part 1Getting familiar with the economy

Part 1 · Lesson 6 · 14 min

There are indicators that tell you about the economy in advance

Learn about leading, coincident and lagging indicators and what a PMI of 50 means.

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2

Part 2 · Lessons 7–11 (5 lessons)

Inflation: the value of money

Learn why rising inflation shakes interest rates and stock prices, and read inflation indicators yourself.

07Part 2Inflation

Part 2 · Lesson 7 · 14 min

Inflation: the same money buys less

Rising prices mean a decline in the purchasing power of money. Calculate what KRW 10,000 will be worth in 10 years.

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08Part 2Inflation

Part 2 · Lesson 8 · 16 min

How to read CPI: headline and core

Learn YoY vs. MoM, core inflation, and how to compare with forecasts.

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09Part 2Inflation

Part 2 · Lesson 9 · 14 min

PCE and PPI: the inflation gauge the Fed prefers

The Fed's 2% target is based on PCE. PPI is the cost-side inflation that companies feel.

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10Part 2Inflation

Part 2 · Lesson 10 · 15 min

Deflation and stagflation

Compare an economy where prices keep falling with one where prices rise amid a recession.

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11Part 2Inflation

Part 2 · Lesson 11 · 14 min

Which assets hold up when prices rise?

Use the 2022 energy sector case to see which assets are strong or weak against inflation.

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3

Part 3 · Lessons 12–18 (7 lessons)

Interest rates: the price of money

Understand that interest rates are the benchmark for all asset prices, and explain how bonds, growth stocks and bank stocks react.

12Part 3Interest rate

Part 3 · Lesson 12 · 14 min

An interest rate is the price of borrowing money

See deposit and loan interest, and why borrowing gets harder as interest rates rise.

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13Part 3Interest rate

Part 3 · Lesson 13 · 15 min

Why do central banks raise and cut interest rates?

Learn about the Bank of Korea's Monetary Policy Board and the US FOMC, and the two goals of price stability and employment.

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14Part 3Interest rate

Part 3 · Lesson 14 · 14 min

The policy rate and market interest rates are different

See how KTB and US 10-year yields price in future policy rates ahead of time.

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15Part 3Interest rate

Part 3 · Lesson 15 · 15 min

Bond prices and interest rates are a seesaw

For bonds already issued, prices fall when rates rise and rise when rates fall.

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16Part 3Interest rate

Part 3 · Lesson 16 · 15 min

Term spread: the traffic light of the economy

See what it means, and where it falls short, when short-term rates rise above long-term rates (an inversion).

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17Part 3Interest rate

Part 3 · Lesson 17 · 15 min

Why do growth stocks hurt more when rates rise?

Calculate with discount rates and present value why earnings far in the future are more sensitive to interest rates.

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18Part 3Interest rate

Part 3 · Lesson 18 · 15 min

Interest rates and sectors: why do banks and insurers differ?

Sort out with cards which sectors smile and which cry when rates are rising.

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4

Part 4 · Lessons 19–22 (4 lessons)

Employment and the economy

Read employment and consumption indicators, and learn that the market reacts to the gap versus expectations, not to the number itself.

19Part 4Employment and the economy

Part 4 · Lesson 19 · 15 min

Employment indicators: nonfarm payrolls and the unemployment rate

Learn how to read the number of jobs added and the unemployment rate in the US jobs report.

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20Part 4Employment and the economy

Part 4 · Lesson 20 · 13 min

The market reacts to the gap from 'expectations'

Consensus and surprise. A good number becomes bad news if it is worse than expected.

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21Part 4Employment and the economy

Part 4 · Lesson 21 · 15 min

When bad news becomes good news

Compare when weak employment leads to rate-cut expectations and when it leads to recession fears.

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22Part 4Employment and the economy

Part 4 · Lesson 22 · 14 min

Consumption and business investment: the engines of the economy

Read the state of the economy's engine through retail sales, consumer sentiment and capital expenditure.

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5

Part 5 · Lessons 23–28 (6 lessons)

Exchange rates and exports: the key to the Korean market

Understand exchange rates and exports, which matter especially for the Korean stock market, and explain how they help or hurt different sectors.

23Part 5Exchange rates and exports

Part 5 · Lesson 23 · 13 min

What is an exchange rate? What USD/KRW at 1,400 means

Sort out the confusing expression that a higher exchange rate = a weaker won.

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24Part 5Exchange rates and exports

Part 5 · Lesson 24 · 14 min

Why do exchange rates move?

See the Korea–US rate differential, the trade balance, and the rush into dollars during crises.

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25Part 5Exchange rates and exports

Part 5 · Lesson 25 · 14 min

Who benefits from a weak won?

Weigh on a scale the mixed gains and losses of exporters and companies that import raw materials.

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26Part 5Exchange rates and exports

Part 5 · Lesson 26 · 15 min

Exports are the heart of the Korean stock market

See how the monthly trade statistics released on the 1st and KOSPI have moved together.

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27Part 5Exchange rates and exports

Part 5 · Lesson 27 · 14 min

Foreign investors and the exchange rate

See how expectations of a stronger won lead to foreign investor buying.

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28Part 5Exchange rates and exports

Part 5 · Lesson 28 · 14 min

Overseas stocks and exchange rates: FX exposure and currency hedging

Overseas stock returns = stock price return + currency effect. Learn what a currency-hedged ETF means.

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6

Part 6 · Lessons 29–33 (5 lessons)

Commodities and the global economy

Connect how oil, gold, copper and the US and Chinese economies transmit to Korean stocks.

29Part 6Commodities and the global economy

Part 6 · Lesson 29 · 14 min

Oil is the blood of the economy

See the chain from oil → inflation → interest rates and the impact on refining, airline and chemical sectors.

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30Part 6Commodities and the global economy

Part 6 · Lesson 30 · 14 min

Why does gold rise when people are anxious?

See the relationship between gold, an asset that pays no interest, and real interest rates and the dollar.

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31Part 6Commodities and the global economy

Part 6 · Lesson 31 · 14 min

Copper and chip prices: the thermometer of the economy

Read the economy and the semiconductor cycle through Dr. Copper and DRAM prices.

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32Part 6Commodities and the global economy

Part 6 · Lesson 32 · 14 min

When the US sneezes, Korea catches a cold

See how the US stock market, the Fed and the dollar affect KOSPI.

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33Part 6Commodities and the global economy

Part 6 · Lesson 33 · 15 min

China's economy and Korean companies

See how the cosmetics, steel and chemical sectors relate to Chinese consumption and the property cycle.

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7

Part 7 · Lessons 34–39 (6 lessons)

Connecting the economy to stocks

Connect the indicators you have learned so far to sector selection, valuation and investor sentiment to interpret the real market.

34Part 7Connecting the economy to stocks

Part 7 · Lesson 34 · 14 min

Stock prices move before the economy does

See, through the 2020 case, why stock prices price in the economy several months ahead.

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35Part 7Connecting the economy to stocks

Part 7 · Lesson 35 · 15 min

Different sectors are strong in different seasons of the economy

Sort out the strong sectors in each phase with the sector rotation clock.

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36Part 7Connecting the economy to stocks

Part 7 · Lesson 36 · 15 min

Reading the sector map through interest rates, exchange rates and oil

Read the Macro Map's impact map and macro environment scores yourself.

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37Part 7Connecting the economy to stocks

Part 7 · Lesson 37 · 15 min

P/E and P/B: rulers for measuring expensive vs. cheap

See price relative to earnings, price relative to assets, and how interest rates relate to a fair P/E.

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38Part 7Connecting the economy to stocks

Part 7 · Lesson 38 · 14 min

Liquidity: when money is released, assets rise

Learn about the money supply (M2), quantitative easing and tightening, and liquidity-driven rallies.

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39Part 7Connecting the economy to stocks

Part 7 · Lesson 39 · 14 min

Reading investor sentiment: VIX and margin loan balance

Read the signals of overheating and fear through the fear index and investing with borrowed money.

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8

Part 8 · Lessons 40–43 (4 lessons)

In practice: your own routine for reading the economy

Interpret the news, learn from crisis cases, and finish with a checklist you can repeat every week.

40Part 8Practice

Part 8 · Lesson 40 · 14 min

Practice interpreting economic news headlines

Practice breaking a headline down into cause → reaction → impact.

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41Part 8Practice

Part 8 · Lesson 41 · 16 min

Learning from crisis history: 2008, 2020 and 2022

Compare the causes, policy responses and recovery times of three crises.

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42Part 8Practice

Part 8 · Lesson 42 · 14 min

Respond rather than predict: how to use your economics knowledge in investing

See how diversification, DCA and rebalancing help you hold up even when your outlook is wrong.

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43Part 8Practice

Part 8 · Lesson 43 · 13 min

Graduation: your own weekly economic checklist

Build seven indicators to check every week and a 10-minute Monday morning routine.

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This is educational material and not investment solicitation. There is no guarantee that past relationships will repeat in the future.