The Importance of Exports in Equity Markets

The export cycle is important for two reasons. It tells us something that happens globally with interest rates. Strong global demand might mean interest rates go up, and that's bad for equities in general. But then again, there are these peculiar cases that we have to look at from a micro point of view. For example, in Korea, the largest exporters are memory chip makers. And the dynamics there are different people have been holding back on investments.