Financial Markets

How big are the markets?

The total global financial assets market is over $294 trillion.

That includes US$69 trillion in the stock market, with the rest made up of a wide variety of government and corporate bonds.

Bear in mind this already large figure does not include property, which is an additional asset class in diversified portfolios.

It also does not include the derivative market, which some estimate to be $1.2 quadrillion.

That’s right.

A quadrillion.

I’m not even sure what that is, but it sounds like a terrifyingly high amount.

Many markets for investors to choose from

Each market can be broken down into further segments.

This is useful to drill into the detail of what is happening in an economy.

Or to give yourself exposure to a particular outcome.

For instance, you can divide the stock market by valuation or by industry sector

The bond market uses the ratings of the major credit rating agencies such as Moody’s or Standard & Poor.

The resources market contains separate commodities.

Property assets can be either residential, commercial, retail or offices.

A general market index a good tool, as it reflects the broad behaviour of a group of assets in the same segment.

To learn more, you can find all of our analysis and commentary on global markets on this page.

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Markets and Money