KOSPI · January 27, 2022
The signal that rate rises were starting
-3.50%
single-day change vs previous close
Part of a longer stretch
Korea's 2021–22 rate-hike bear market
midway through · 2021-07-06 → 2022-09-30, -34.79% over the whole period
What happened that day?
- The KOSPI fell 3.5% on the day
- The Fed had said the day before that it would soon start raising rates, because inflation was running higher and longer than expected
- The whole post-covid advance rested on rates being at the floor. This was where that premise began to break
- Growth companies not yet making a profit fell hardest. Shares priced on distant future profits react to rates first
- Heavy buying with borrowed money by individuals deepened the fall — when prices drop, that stock is sold whether the owner wants to or not
- The decline ran on into September of that year
Sources
Every figure on this page is recomputed from the original daily closing prices and checked against them at build time. The account of what happened is written from the sources listed above.