To understand the financial markets, you need to understand the hierarchy of asset classes.
That hierarchy is as follows:
Globally, the stock market is about $69 trillion in size, trading about $191 billion in shares per day.
The bond markets are well north of $140 trillion, and trade about $700 billion in volume per day,
The bond market is the SMART money and reacts to major policy changes before stocks.
The rise of the global financial markets has brought both wealth and risk to almost every crevice of the world. "There have been huge fluctuations in asset prices over the past decade," write the analysts at the World Gold Council. ...
After a sudden rout in financial markets that wiped $2 trillion in global market cap over the past week showed signs of easing, overnight stocks tried to stage another "BTFD-type" comeback with European stocks climbing for the first...
CBOE Holdings, the largest U.S. options exchange, is buying BATS Global Markets, the second largest stock exchange, as trading venues continue their consolidation and push to have business lines across all financial asset classes.
Worries about a massive crisis in the global bond market are starting to grow. Last week a note from Goldman Sachs warned that even a relatively small upward movement in US Treasury yields could spark as much as $1 trillion in losse...