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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investment industry
Creative Destruction of the Investment Industry
The creative destruction of ‘free or nearly free’ investing is coming. Nothing surer. The destruction we’ve seen in the retail sector will be repeated in the investment industry. A good number of financial planning and investment platform businesses are going to fail to adapt, and will therefore die. But the more imminent disruptor I see coming is one that hardly anyone is expecting.
Finding Out the Truth about Stocks
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US stock market
Here’s Why the Stock Market Correction Could Be Over
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These Fund Managers Want to Be Like You
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China Could Wreak Havoc on Stocks Everywhere
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Australian exports economy
The Radical Shift Hitting Aussie Exports
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bank stocks CBA
What Lies Ahead for the Big Bank Stocks?
Banks are the backbone of many investors’ portfolios. Their steady and growing dividends have been a boon for income investors. They are our biggest dividend payers. But could this all be about to change?
Selling Cryptocurrencies and Buying Stocks
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Stock market graph
This Bull Run Still Has Legs to Run
Stock markets can be volatile. You’ve been reminded of that over the last week. It’s led some to make sweeping statements about a market crash. Just keep a couple of things in mind when reading such analysis. One, the US economy remains strong.
investment industry giving dumb advice
The Dumbest Things the Investment Industry Says
At what point do you panic? After the stock market has lost half its value or before your capital is cut off at the knees? The events of last week are certain to have more investors asking themselves that question. Do we reduce our weightings and retreat to a place of safety? The industry has a readymade answer for that one…buy the dip.
australia marijuana stocks
Australia’s Marijuana Goldmine
Clearly, this is a market on the verge of exploding. And Australia is on the cusp of becoming a world leader. The federal government’s new laws will likely come into effect at some point this month. And waiting on the frontline are a few Aussie pot companies poised to take advantage.
Financial Engineering Could Crash the Stock Market
Financial Engineering Could Crash the Stock Market
Thanks to the dummy spit the US market threw earlier this week, we got a glimpse at just how far Wall Street will go to make a buck — mostly at your expense, of course. Not happy with giving the world layer after layer of debt, the masters of the banking industry found yet another way to make money.