Understanding and navigating the global investment landscape is essential for any serious investor. The world economy is a complex web of interconnected players, and to truly capitalize on the opportunities it presents, we must embrace a broader perspective. Global markets offer a wealth of options for diversification, risk management, and alpha generation. By extending our reach beyond our own borders, we can identify and seize investment opportunities that would otherwise go unnoticed. Moreover, a well-rounded understanding of these markets allows us to better anticipate and adapt to the ripple effects of geopolitical, economic, and technological shifts. As the saying goes, the world is becoming a smaller place every day, and in this increasingly interconnected world, it is more important than ever for investors to maintain a global mindset when it comes to building and managing their portfolios.
- Ray Dalio
The GlobEx Markets financial dictionary is a reference resource that provides the definitions and explanations of various financial terms, phrases and concepts that are used in international finance and global investing. It includes a broad range of financial terms, such as those related to stocks, bonds, currencies, commodities, options, futures, crypto and much more.
A stock market sector is a broad grouping of industries and companies that have the same economic characteristics. In simple terms, companies in a common sector have a lot in common. There are 11 major market sectors that most investment managers and investors will monitor and use for investment purposes.
In finance, risk is defined as the degree of uncertainty or potential financial loss in an investment decision. Investment risk factors and risk exposures are major areas of focus and concern when selecting investments which is why risk management is an important part of investing and investment strategy.
A stock, also known as an equity, is a type of security that represents a partial ownership in a company. There are two main forms of stock, common stock and preferred stock, but there are several different classes of stock.
A bond is a debt instrument or security that is used to raise capital in the form of a loan to the bond issuer. In return, the bond issuer provides a promise to the investor or bondholder for the return of principal and the payment of some form of interest in the future.
An options contract gives the right, but not the obligation, to buy or sell an underlying asset at a specific price prior to or on a certain date. Futures create a legally binding obligation to the buyer and seller of an asset, where the transaction will occur at a pre-agreed price and future date.
Option strategies allow traders and investors the opportunity to hedge or protect investment positions while also being able to profit from movements in the underlying assets based on market sentiment, whether bullish, bearish or neutral.
A commodity is a raw material or basic good that can be bought or sold. Commodities categorized as hard commodities, typically natural resources, are mined or extracted while soft commodities, livestock and agricultural products, are raised and grown.
An exchange-traded fund (ETF) is a type of security that is similar to a mutual fund but an ETF is actively traded throughout regular trading hours on a stock exchange and it can be bought or sold at current market prices through an investment broker.
Islamic finance is the banking and financing activity that is following sharia or Islamic law in accordance with Islamic economics. Some segments of Islamic finance include mudarabah (profit-sharing and loss-bearing), wadiah (safekeeping), musharaka (joint venture), murabahah (cost-plus), and ijara (leasing).
Foreign exchange (FX) or forex is the global marketplace that allows for the exchange or the conversion of one national currency for another currency at a specific foreign exchange rate. Forex transactions can occur in the spot market, the futures market or the forward market.
Digital currency is a form of currency that exists in an electronic or digital form and is primarily managed, stored or exchanged through the Internet. There are three types of digital currency, which are cryptocurrency, virtual currency and central bank digital currency.
“Life is divided into three terms - that which was, which is, and which will be. Let us learn from the past to profit by the present, to live better in the future.” - William Wordsworth
Advancements in information technology and internet security have made it easier to trade and invest internationally. Greater access to financial information and global data have created more transparent investing conditions, which has also lead to more investment opportunities opening up globally.
Your success in investing will depend in part on your character and guts and in part on your ability to realize, at the height of ebullience and the depth of despair alike, that this too, shall pass.
The best way to measure your investing success is not by whether you’re beating the market but by whether you’ve put in place a financial plan and a behavioral discipline that are likely to get you where you want to go.
October: This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.
It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong.
Waiting helps you as an investor and a lot of people just can’t stand to wait. If you didn’t get the deferred-gratification gene, you’ve got to work very hard to overcome that.
Apple's market share is bigger than BMW's or Mercedes's or Porsche's in the automotive market. What's wrong with being BMW or Mercedes?
The four most dangerous words in investing: This time it’s different.
A market downturn doesn’t bother us. It is an opportunity to increase our ownership of great companies with great management at good prices.
Buy when everyone else is selling and hold when everyone else is buying. This is not merely a catchy slogan. It is the very essence of successful investments.
It’s one of the most important things at the end of the day, being able to say no to an investment.
The worst thing you can do is to invest in companies you know nothing about.
Investors have very short memories.
Most investors want to do today what they should have done yesterday.
The older I get, the more I see a straight path where I want to go. If you're going to hunt elephants, don't get off the trail for a rabbit.
Smart investing doesn't consist of buying good assets but of buying assets well. This is a very, very important distinction that very, very few people understand.
I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.
