I Became the Youngest Daughter of a Chaebol Family

The bond market is larger than the stock market.

Usually, who do you think holds the most influence in the stock market?

Hedge funds, pension funds, wealthy individuals, or corporations... those might come to mind.

But the “players” in the bond market are on a different scale.

Governments themselves sit at the table by default, and massive institutions—knowingly or unknowingly—have a foot in it as well.

That's due to the inherently stable nature of bonds.

So it's not unreasonable to think of them as just slightly riskier than deposits but with slightly higher interest. Under normal conditions, that interpretation is fine.

“So what you’re saying is... we’re no longer in that ‘normal’ state, right?”

Exactly.

“Like I said earlier. The bond market mainly reacts to credit ratings and interest rates... and interest rates are about to spike.”

Sure, the stock market will be affected if interest rates rise. When bonds fall, stocks generally rise—so in that moment, stocks might go up.

But the stock market won’t swing as wildly as the bond market.