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.

Read more
deficits and the US economy
Why Deficits ‘Don’t Matter’
Deficits used to draw down the nation’s savings. That’s because the feds had to borrow to fill in the hole. And when you borrowed, you borrowed what someone else had saved. No more. The new dollar and the Fed’s low interest rates made real savings irrelevant. The Fed dropped interest rates to make saving unattractive…and covered the deficits with fake savings — credit it invented ‘out of thin air’; it bought US Treasury bonds itself.
Clancy exploration share price
Cobalt Demand Results in Clancy Exploration Share Price Surge
Shares of Clancy Exploration Limited have grown by a massive 50% today. An increase in cobalt demand has triggered a surge of prices for the mineral across the span of two years. Clancy Exploration, which has been operating since 2003, has managed to produce thousands of tonnes of cobalt from its Bou Azzer operation, along with large quantities of silver and gold.
global markets
Dr Doom Brought to You from the Grand Hyatt Melbourne
‘Doctor Doom’ Marc Faber is down in Melbourne to discuss where the world is heading. Is a stock market crash on the cards? Or is it something else? ‘Where is the World Going?’ was the theme of Dr Faber’s presentation today. And around the world we went. Dr Faber had so much to say, we can’t fit everything in. But Dr Faber is quite well versed in the Chinese economy...
US economy being punched
The Economy Will Lose a Few Teeth…
Guggenheim investment fund’s global chief investment officer Scott Minerd predicts a 40% decline for the Dow…mostly in 2019. He says the US economy is on a ‘collision course with disaster’. He’s right — at least about the ‘collision course’.
Wesfarmers Limited capital
Wesfarmers: The Sound of Churning Capital
What the spinoff brings back into focus is how companies best use their capital. Although Coles generates around one third of Wesfarmers’ earnings, it ties up around 60% of its capital. By separating Coles, it should allow Wesfarmers to better use its capital elsewhere. The other issue though, is what Wesfarmers will do with all that extra capital.
Your Early Warning Sign for the Next Real Estate Peak
Your Early Warning Sign for the Next Real Estate Peak
It’s very easy to get caught up in all the day-to-day noise. The S&P 500 was up a hundred points, the Dow Jones down six hundred points, and on it goes. The stock market will show volatility from time to time. Housing starts can be a good way to gauge how the economy is tracking.
US stocks
The Best Bet for US Stocks
Logically, if falling interest rates sent stocks up…interest rate increases should send them back down. And already, they have. The Nasdaq is negative for 2018. The Dow has moved about 8% below its peak. And if we’re right about the general direction of things, theory tells us that interest rates ought to continue going up…and stocks ought to continue going down.
share market going up and down
Why the Share Market Goes Up or Down
The reason why the stock market goes up or down in the long term has very little to do with ‘trade wars’ or ‘tech stocks’ or ‘higher earnings’ or ‘terror attacks’ or ‘interest rates’. These are the symptoms NOT the cause. Markets are driven by social mood…our collective state of mind.
online privacy
Free Yourself from the Internet
In the wake of these discouraging few weeks, now is the time to reconsider our attachment to the digital world. As internet users and investors, it’s always valuable to take some time away from the flashing screens and turbulent charts in order to return to the markets refreshed and astute.
Donald Trump US Economy
What Trump’s Quack Economists Will Do Next
Yesterday, stock markets bounced back in the afternoon, after investors began to think that maybe Donald Trump wasn’t really serious about a trade war. One day, perhaps soon, they won’t be in such a good mood. And the market won’t bounce back. Not that the end is necessarily nigh…but, in theory, it must be out there somewhere.