Transcript Asset Classes version 1

Brain Teasers
 You’ve got a 10 x 10 x 10 cube made up of 1 x
1 x 1 smaller cubes. The outside of the larger
cube is completely painted red. On how many
of the smaller cubes is there any red paint?
Answer
 Larger cube is made up of 1000 smaller
cubes. The easiest way to think about this is
how many cubes are NOT painted? 8 x 8 x 8
inner cubes are not painted which equals 512
cubes. Therefore, 1000 – 512 = 488 cubes
that have some paint.
Quantitative Finance Society
Asset Classes
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Announcements
 Upcoming Presentations:
 Anatomy of a Trade
 Derivatives
 Portfolio Invites
 Successful candidates will be receiving an
email today about our portfolio meeting
tomorrow
Market Update: The Macro View
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Asset Classes
Equities
Fixed Income
Currencies
Commodities
Alternatives
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What determines the price of a security?
Supply & Demand
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Equities
 What determines the price of a stock?
 Everyday movements, news
 Volume
 Market Psychology
 Multiples (Comparables)
 Earnings, P/E
 EV/EBITDA
 ETFs
 www.trefis.com
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Equities
 Different sectors, different way to value
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Healthcare
Tech
Telecom
Financials
Consumer Discretionary
Consumer Staples
Utilities
Industrials
Energy
Materials
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Fixed Income
 Governments
 Rates – GDP, unemployment, inflation
 Corporates
 Credit + Rates
 Mortgages
 Credit + Rates
 Ratings
 Investment Grade, High Yield,
Crossovers
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Currencies
 Directly related to rates
 Purchasing Power Parity (PPP)
 Balance of Payments
 Carry Trade, Interest rate differentials
 Country-specific trade characteristics
 USD, EUR, JPY, GBP, CHF
 CAD, AUD, NZD, SEK, NOK
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Commodities
 Gold & Precious Metals
 Oil, Natural Gas, other Energy
 Agricultural
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Alternatives
 Private Equity
 Venture Capital
 Hedge Funds
 Real Estate
 Collectibles
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Questions?
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