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.
stocks
Finding Out the Truth about Stocks
Australian investors often lament the performance of our market. They look at other markets and wonder why ours can’t be the same. We all know that financial stocks dominate the Australian market (around 40%). That the Big Four banks account for about 30% of the index. Remember, an index simply reflects the stocks that are in it. However, while that profit was 8% higher than the previous year, revenue hardly budged an inch.
US stock market
Here’s Why the Stock Market Correction Could Be Over
Bitcoin is a failure. Few people use it as a currency. It’s too volatile, the transaction costs are too high, and it’s difficult to store and secure. That’s why we keep on saying that you should stick to what’s known to work: stocks. In a world influenced by central banks, we should expect the unexpected. That’s why it’s worth asking: Is the stock correction over or are we due for another dip?
investment opportunity
These Fund Managers Want to Be Like You
For a long time, Warren Buffet specialised in dumpster diving. He would buy small- and micro-cap stocks that traded at heavy discounts. Then, as a catalyst caused the share price to spike, he sold out for huge gains in a relatively short time. Now it seems droves of fund managers are trying to do the same thing. Let me explain how this will create opportunities for individual investors like you…
stocks
China Could Wreak Havoc on Stocks Everywhere
It’s still not clear if China will start selling US bonds. In fact, it could be that China can’t help but buy more US bonds. So what can you do if the second largest US bond holder goes haywire? Reduce losses as much as possible. It’s probably one of, if not the most important rules when investing.
Australian exports economy
The Radical Shift Hitting Aussie Exports
With our wide-open space, clean air and natural wonders, Australia is an exporter’s dream. It’s no surprise that our natural resources are coveted worldwide. However, the export industry in Australia also has a dark side…
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?
stocks
Selling Cryptocurrencies and Buying Stocks
Cryptocurrencies are a terrible investment, in my view. They are difficult to buy, attacked by governments and hackers worldwide, and in a major downtrend. So, with too many risks to worry about, I suggest sticking to the stock market. That’s where you can sleep at night, while making potentially massive gains during the day.
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.