Building a Multi-Asset Perspective

What this unit covers

Build the habit of checking what shares, bonds, currency and gold are each doing before forming a view, bringing together every asset class in this level.

By the end you will be able to

• Explain why checking only equities gives an incomplete picture of markets.
• Use a four-market check, equities, bonds, currency, gold, to form a fuller view.
• Recognise that markets moving in different directions on the same day is normal.

How it starts: One Number, One Day

1. The Nifty closes up 1.2 percent and every headline calls it a good day.
2. That same day, bond yields rise, the rupee weakens, and gold edges higher.
3. If you only checked the Nifty, what would you have missed about that day?

Words you will meet

Yield

The return a bond pays its holder, which moves as interest rate expectations shift.

In this module: Cross-Asset Thinking

1. Capital Flows Between Asset Classes
2. Risk-On vs Risk-Off Markets
3. Correlations Across Markets
4. Building a Multi-Asset Perspective (this unit)