GlobEx Markets Resources
Which Investment Resources to Use
"An investment in knowledge pays the best interest." These words were spoken by Benjamin Franklin over 200 years ago and they remain highly important today. Before you can make investment decisions, you need knowledge, especially when you are investing internationally. You can benefit from investment resources like blog articles on global finance, an understanding of exchanges and indices, central bank data, regulatory agency information, investment research and global investment terminology.
Country economic information that can be pulled from central bank reports can be important in your decision making as well as the local regulatory environment for foreign investors. Good investment research will help filter better trading opportunities and a strong comprehension of global investment terms and phrases will provide an advantage over those who don't take the time to understand the market, the products or the language of finance.
List of Investment Resources
Investment Blog Overview
How we learn about certain subjects and topics has shifted over the last 10 years. Blogs, YouTube and other social media platforms have transformed the learning process. Many blog posts provide good information on investing but often, the author misses the mark due to inexperience or lack of depth. As you increase your focus on investing internationally, remember that the quality of the article is always more important than the quantity of the information. In fact, some of the best investment opportunities can be those that have been under researched and under the radar of investment professionals but the depth and quality of the information supports an investment.
Largest Stock Exchanges Overview
Opportunities for global investing can be discovered on many trading platforms. There are major stock markets and exchanges throughout the world. The largest stock exchange is the New York Stock Exchange (NYSE), which began 2020 with a market capitalization that exceeded US$23 trillion. Traditionally, the top 10 largest stock exchanges have been the same exchanges each year but to start 2020, there was a new name in the top 10, which gave us a sign on the progress of investment globalization and new opportunities.
Central Bank Overview
A key responsibility of a central bank is to set and monitor a country's monetary policy. Each central bank analyzes and publishes their country's economic data, which helps investors better understand the country specific risk and rewards that an investor in that country may experience. Following key economic data and knowing how it will impact local companies or products on the exchanges will offer many advantages.
Regulatory Agency Overview
The local regulatory agencies for securities and commodities trading will establish the rules and regulations for the exchanges in their country. They are also responsble for investor protections. Before investing in a foreign market, review the regulators website to understand if foreign ownership is allowed on the local exchange. It is important to know who is the regulatory agency and if they have a history of enforcing investor rights. The last place you want to trade is in a country that has an unfriendly regulatory environment for foreign investors.
Investment Research Overview
With investment research, always choose quality over quantity but make use of all the research that you can get your hands on. While investment banks have large teams to generate investment research, there needs to be an awareness if this research is for one of their investment banking clients. There is always a concern of bias as it is rare that an investment bank will provide a negative or compromising report on one of their clients so use all the available research that you can find to support your investment decision.
In addition to company specific investment research, don't forget that research and analysis on market sectors, industries and other related factors can help you make better decisions.
Glossary Terms and Phrases Overview
It would make life easy if all the country's and exchanges used the same financial terms and phrases but with regional and cultural differences, this is not always the case. We learn new languages to communicate with others, transact business and to take advantage of the benefits that another language provides. Global finance is a specialized language that if understood and mastered, it will provide benefits that will help to decrease risk and improve returns. Financial literacy is the foundation of developing good investment strategies and sound decision making.