Want Investment? Let’s Understand the Impact of These Economic Variables

Jakarta, Armfalcon.com– Chairman of the Board of Commissioners of the Purbaya Deposit Insurance Corporation Yudhi Sadewa said that several economic variables had an impact on market growth, such as stocks, bonds and the rupiah exchange rate. These variables include Gross Domestic Product (GDP), inflation, the USD/IDR exchange rate, and world oil prices.

“To make an investment, we need to know the impact of the main economic variables on the market because all economic variables can affect market movements,” he said in the Cuan Goes to Campus Class, Tuesday (21/3/2023).

He explained that when there is an increase in the GDP variable it will also have an impact on increasing stock prices, increasing bonds, and strengthening the rupiah exchange rate. This also applies when there is a decline in GDP.

Then the second variable is inflation or the rate of increase in prices in general. This variable also influences market movements, namely when inflation increases, stocks and bonds will decrease, while the rupiah exchange rate will weaken.

“Then if interest rates rise, the impact on stocks will decrease, bonds will fall, and the rupiah will weaken,” explained Purbaya.

The fourth is the variable exchange rate of the rupiah against the dollar. Purbaya explained that when the rupiah exchange rate weakens, the impact on stocks and bonds is a decrease.

Lastly is the world oil price variable, where this variable will have an impact on the decline in stocks when oil prices fall. The decline also occurred in bonds, while the rupiah exchange rate will weaken.

In addition to understanding the influence of these variables, Purbaya also emphasized investment tips. These include identifying needs and capabilities, identifying selected financial products and services, recognizing the benefits of risks, and understanding rights and obligations.

He also emphasized that investors need to be careful when there are offers of investment products that provide low risk with high returns.

“So if you want to invest, you have to choose which risk you like. There is always a relationship between high risk And high returns. Low risk, low return. So if the investment sounds too good, too be trueYou have to be careful,” said Purbaya.

[Gambas:Video CNBC]

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source: www.cnbcindonesia.com

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