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    The 4 Major Asset Classes

    JF

    Jeremy Fielder

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    Table of contents

    1) Equities2) Fixed Income3) Commodities4) Currencies​5) Honorable mentions6) Conclusion

    Equities

    Equities, also known as stocks, are ownership stakes of a company in the form of shares. Although equities can be riskier, they are often more rewarding. Equities can benefit when the economy grows or slows depending on the equity.Examples

    • $SPY
    • $QQQ
    • $AAPL
    • $GOOG
    • $TSLA
    • $FB
    • $MSFT
    • $AMZN

    • $NFLX

    Fixed Income

    Fixed income markets deal with debt instruments that payout interest payments to the investors over the duration of the loan. Fixed-income instruments are meant to fund growth for a business by receiving cash from investors in return for interest payments to the bond buyers. Bonds are backed by collateral such as a house, equity, or the government's promise. Fixed income is less risky but also less rewarding.Examples

    • Treasury Bonds
    • Annuities 
    • Corporate Bonds
    • Municipal Bonds
    • Mortgage-backed securities
    • *Real estate 

    Commodities

    Commodities are comprised of four basic tenets. #1 Base metals to build the economy. #2 Energy to power the economy #3 Agriculture to feed the economy and #4 Precious metals as a form of money.Example:

    • Lumber
    • Aluminum
    • Copper
    • Steele
    • Oil
    • Natural Gas
    • Corn
    • Rice
    • Wheat
    • Sugar
    • Coffee
    • Gold
    • Silver

    Currencies

    Currencies are instruments of accounting and exchange to facilitate the transfer of value. Currencies are the largest and most liquid asset class, trading between $6-$7 trillion a day. Currencies are the vehicles that facilitate all asset investment.

    • Dollar
    • Yen
    • Euro
    • Yuan
    • Pound Sterling
    • Swiss franc

    Honorable mentions:

    Real Estate is the largest illiquid asset class by market cap. It's unique because it is a combination of equity and fixed income.​
    • Residential real estate
    • Commercial real estate
    • Industrial real estate
    • Land real estate

    Crypto assets are an emerging asset class that can revolutionize everything of value, much like the internet. Crypto is unique because it's a combination of currency, commodity, equity, and fixed income.

    • Bitcoin

    • Ethereum

    • Cardano
    • Polkadot
    • Uniswap
    • Tether
    • DIA
    • Chainlink

    Conclusion

    1. Equities are ownership businesses that create value and allow public ownership.
    2. Fixed income allows businesses and countries to grow and invest in new projects without giving up ownership. 
    3. Commodities are the building blocks of the physical world and the products we consume. 
    4. Currencies are the vehicles to facilitate it all. 
    5. Crypto assets are an emerging asset class with lots of potential.