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actually correlate with the growth of the economy but

useful instruments to look at. Of course we've explained S and

P fivehundred. And then the Dow Jones is known as the DJIA. And

into the rest, stock exchanges, you the main types. You got

just do a bit more research as well. You can search up on

term. You don't really get these you know particular

Chicago. Um I'd recommend if you want to learn more about it

trading this might be very hard to actually realise and see

was an introduction into the asset classes. Remember to

get into how they correlate and how we can use that in that to

you might be in certain market cycles where stocks do not

our benefit in a way. So anyways guys take care and I'll

of course you've got the Nasdaq competitor index. So any this

thing with asset class correlations. We we have to

No, it doesn't work like that. It's something that we see

because these correlations are very long term. And that's the

look at in the videos to come. Uh in terms of day to day

YouTube or on internet on Investopedia. And then some

fundamentally and as you know fundamentals are generally long

understand what they are and then of course we're going to

much the cream of the crop. That's the one you want to be

progress. However there's some differentiating factors where

something that we see day to day. Oh okay, I'm seeing DXY

charts or your five minute charts. Uh so before we get

looking at. Um over the long term these trends are likely to

prices move on expectations about the future. As news

show the economy and stocks in tandem. So what I mean by that

and the Nasdaq composite index. So the S and P 500 is pretty

correlations on a day to day basis for your one minute

compare have to compare all the assets over time. It's not

company's municipal which is states government which is US

rather they might be inverse but this is something that we

S and P five 00 composite index just before you get into that.

like we've explained you got the corporate bonds which a

organizations the main ones as I said were the government

and then agency bonds are government affiliated

Treasury which is the main types of bonds that we look at

of future interest rates. As a leading economic indicator. The

got bonds which is the actual asset then you've got the

returns on that. And S and P 500 represents the market

bonds, the US treasuries. Now next the stock market. So stock

conveys information related to the economy and the direction

is as the stocks progress the economy is also likely to

the company might break down or can't pay that back obviously

depends on interest rates at the times. And that affects the

don't want to be investing there so the types of bonds

government bonds this is very rare that happens because the

people could or where investors can put their money in and see

US and it's all bunched together in an index where

something that we really do look in detail especially later

of stock companies to to deal with their bonds because if

default so obviously investors need to look for the best types

recovery. The S and P 500 index captures stock movements along

proxy. It's predictive of recession or a economic

NYSC which is in New York. You got the Nasdaq and the CBOE in

on with because you've got to think of it like this. You've

see this happen where a government will default you see

they're investing in something that they see potential where

going up. I can expect the S and P five 00 to go up as well.

default. Uh so bonds can be risked as a default so you know

with the widely known but less important Dow Jones industrials

this more commonly with stock stock bonds you know what do

The S and P 500 is pretty much 500 of the top companies in the

a maturity date that yield a Increases. So it might be a two

point the principal amount must be paid back in full or risk

rates up bond price is full and vice versa. This is something

government is such a big institution very rarely do you

percent yield for example or it might be 5percent. However much

they don't have to pay back fully but usually with

interest rates are now quite common. Bond prices are

they call it the the company bonds that's it they can risk

that we're going to go through briefly right now but it's

yield. So as the bond matures and you know over time there's

alone then that loan is paid back to the investor in full

them but essentially gives that company alone or the government

to as a fixed income instrument since bonds are traditionally

companies, states, sovereign governments, municipalities to

it is. And lastly bonds have maturity dates at which the

inversely correlated with interest rates which so when

return on that bond and the return on a of that bond also

paid a fixed interest rate which is called the coupon or

the coupon rate to debt holders. Variable or floating

and also with interest rate as well so bonds are used by

say okay we want to purchase some bonds then the investor

finance projects and operations. So bond is referred

essentially sells that bond to them or not sells that bond to

bonds are used to borrow money from investors so the

on the interest rate at which the bond was sold. So basically

influential those actually is on interest rates and what the

explain because I'm pretty sure most people are not too

providing us with a more profound directional bias.

There are usually clear correlations and inverse

government or a company like like a stock company they might

has a great effect in the interlinked market places. So

through eventually. So the first type that I have to

you've got to understand that every asset class links

government. Bond investors receive periodic payments based

loses purchases power with rising inflation. As a result

correlations between different asset classes that we will go

feds really look at. So bonds or fixed income investments are

essentially loans from an investor to a company or the

devalue in perspective of the entire world and what's going

how can we benefit from this knowledge? In understanding all

that affects our currency pairs that going to be trading. So

together but you must understand that link and how

just cash inflation will eventually make your money

as investments move from one asset class to another. This

of the inter asset class movement of capital we

familiar with the bond market. Uh just understanding how

understand the effect of certain currencies thus

on. Holding your money as cash will simply depreciate it as it

is very very important because you must understand if you hold

And the owners of this capital always aim to look for the best

as possible so yeah people will own you know many different

types of currencies not just their own domestic currency. So

any one time imagine that there is a set amount of investment.

but to put it all in perspective to understand

stock market, currency indexes and the commodity market. And

why do we do that? So I've just been briefly explaining that

opportunity to both hedge their money against inflation which

with the flow of money and investment around the world. At

safe havens especially in terms of market crisis people want to

most familiar with the certain types of currencies that are

at and then lastly currencies this is obviously what we're

you've got lumber and plenty of others that we're going to look

fundamentals we must ensure that we know what is going on

put their their money into something that will be as safe

what we look out for? Uh we look at the bond market, the

You've got commodities. So what this is is owning tangible

more into this you know in more detail but you've got dairy

share, emerging market equities and there's obviously different

metals like like gold, silver, and obviously all the others

but you actually own that asset. So you've got precious

then you've got oil and then I've put it as others we get

assets. Of course you actually don't have to buy bars of gold

types as well but these are the main types. Then the third

something. So this could be a common share, a preference

government initiatives. So what this means is treasury bonds,

you've got the second asset class which is equities

way. So if we were to break it down there's four main asset

classes that we look at. There's fixed incomes which are

equities and stocks. So what this is is partial ownership or

cash deposits, saving accounts and corporate bonds. Then

something that will actually bring them the best yield so

whether that's certain currencies, whether that's in

understand the flow of money and the flow of capital around

investors around the world they want to put their investment in

the end of the day you've got to understand especially with

certain commodities, whatever it may be, this is, these are

the world and see how this affects each asset class in a

the correlations that we've got to understand. We've got to

currency pairs and USD and everything like that because at

might not understand is how this actually affects Forex and

section so what we're going to be looking at right now is

different types of asset classes but the thing that you

asset classes so now many of you know of course about

Yes guys welcome to the next video in the core fundamental

see you in the next video.