Table of contents
1) Equities2) Fixed Income3) Commodities4) Currencies5) 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 Estateis 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
- Equities are ownership businesses that create value and allow public ownership.
- Fixed income allows businesses and countries to grow and invest in new projects without giving up ownership.
- Commodities are the building blocks of the physical world and the products we consume.
- Currencies are the vehicles to facilitate it all.
- Crypto assets are an emerging asset class with lots of potential.