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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.